Why would you buy a Gucci bag when any other bag can hold your belongings too? You're going to pay 10x more for a bag because it's constructed a little bit better? No. There's a reason they plaster their logos all over those things. It's so you can show others you're wealthy enough to afford Gucci.

Think of NFTs like digital Gucci and Prada.

They are used for social status signaling. This is very important to some to show elevated importance and wealth. For example Jay-Z bought a $120K CryptoPunk NFT and used it for his Twitter profile photo.

Some NFTs can also get you into exclusive clubs and parties. Again, signaling. But now you get to hobnob with other high net worth individuals. This too has a lot of value for some.

It's a tale as old as time, just in the digital world. Maybe it's just some fad that will fizzle out. Regardless, if so then those who can afford this will move on to buy something else to signal their wealth and eliteness.

Besides all of this, they're used for speculation and money laundering.

Source: someone I know who makes and sells NFTs