What distinguishes instance variables from class variables?

Instance variables are unique to each instance of a class, meaning that every object created from the class can have different values for its instance variables. This allows for individualized properties and behaviors for each instance. In contrast, class variables are shared across all instances of the class. They hold data that should be consistent across all instances, so changing the value of a class variable in one instance affects all other instances as well.

This distinction is crucial in object-oriented programming because it informs how data is managed and accessed. When you create multiple objects from a class, each can maintain its own state independently through instance variables while referring to the same class-level data through class variables. This feature supports encapsulation in programming, helping developers manage complex data structures and behaviors effectively.