"When most people think of non-fungible tokens (NFTs), they think of their value as lying in their being unique – hence “non-fungible.” As one-off, digital representations of art, they are indivisible and non-replicable, to which people can attach value. But now there is a growing move to make NFTs usable in several different ways. This movement toward added utility creates a different kind of value proposition for NFTs, on top of their scarcity and collectability."
Types of NFT Utility
Access to exclusive events or spaces, example Bored Ape Yacht Club for See Friends
Gamification and interactivity
Community access or participation
"Utilities, even the simplest of features, allow buyers to derive a new form of value from an NFT. Instead of valuing the attractiveness of the art, utility defines its value. Projects with utility have begun to outperform those without."
Source: Data Driven Investor