A non-fungible token (NFT) is a distinct digital identity registered on a blockchain to verify ownership and legitimacy. Its inability is to be duplicated, replaced, or divided makes NFT unique. In this study, the Systematic Literature Review (SLR) by Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) model of the NFT ecosystem, its challenges and opportunities are elaborately discussed. The novelty of the paper lies in the conduction of the SLR of the NFT ecosystem using the PRISMA model, whereby the benefits and drawbacks of the stakeholders of the system were analyzed and synthesized. The SLR started with 216 papers from various databases and ultimately selected 31 papers published during 2020–2024 that satisfied the selection criteria of the present study. The nine research questions and gaps in the current research trends have been identified with a focus on ethical analysis, market value prediction, security, smart contract, and use cases of NFT ecosystem. The study would enable future researchers to find many open issues of this new technology and to develop novel solutions to enable the NFT market to proceed smoothly.