Fractional NFT Markets Experience Immense Growth in 2021
It is no longer news that the non-fungible token economy has skyrocketed in value. However, a new sector of the NFT industry called fractional NFTs is witnessing massive growth. Today, many projects within the NFT ecosystem now deal with fractional NFTs. These NFTs are assets divided into several pieces and shared among many holders. Thus, according to The Coin Republic, fractional NFTs now have about $212.6 million market capitalization.
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What You Need to Know About Fractionalized NFTs
Fractionalized Non Fungible Tokens(NFTs) is a form of NFT that involves dividing a digital artwork into thousands, millions or billions of pieces, thereby allowing a large number of people to get to buy and own a part of the artwork. In addition, it presents a more affordable way to buy, sell, and earn from NFTs.
What Led to the Emergence of Fractionalized NFTS?
The increased demand for blockchain-based non-fungible token (NFT) assets has necessitated fractionalizing NFTs into smaller bits. As such many, more people can acquire the collectible. However, the bits of these NFTs could be traded, and the piece's market value can fluctuate. Therefore, many believe that when NFT is split into bits, it reduces the barrier to entry into otherwise a very expensive NFT collectibles market.
In an article published by CoinBureau, Bertocchi stated that "NFT fractionalization is most likely destined to disrupt not only the world of fine art and gaming but potentially even that of Decentralized Finance (DeFi) and investing as a whole." Hence, you stand to benefit a lot from investing in fractionalized NFTs.
Benefits of Fractional NFTs
There are two main reasons why fractional NFTs are beneficial to NFTs traders. First, fractional NFTs offer interested persons the opportunity to jointly own a piece of digital artwork. Hence, a large amount of money will be pooled together in acquiring the digital artwork involved. Second, fractional NFTs are a better way to monetize their artwork in a more efficient capital wise manner.