The inception of Non-Fungible Tokens (NFTs) took the digital economy by surprise. Starting from scratch, the NFTs economy is now grown up into a multi-billion dollar economy. Millions of NFTs have been sold on a weekly basis against whooping prices in digital currencies, mostly in Ethereum. Within this economy of NFTs, however, there is yet another economy that belongs to ‘fractional NFTs’.
These ‘fractional NFTs’ are no different than usual NFTs. The only difference between the two is that fractional NFTs are cut into several pieces and distributed amongst community members.
NFT sector is one of the fastest-growing sectors which too is an innovation stemming out of the digital industry. Last week NFTs sales saw revenue generation of more than US$ 483.62 Million. Within 2021 alone, till 13th December 2021, the total sales of NFTs exceeded a sum of US$ 13 Billion.
The need for fractionalized NFTs arose when an NFT was found to be over-expensive. Resultantly, not everyone could acquire them. In an effort to lower down the prices of the collectibles to a convenient level, and NFT was then torn into several pieces. The interested person would then be able to buy fractions according to the funds available to him or her.
Currently, there are four major platforms where the majority of fractionalized NFTs are available which are Daofi, Otis, Fractional and Unicly. Recently, an online retail giant of the world, Amazon, too has confirmed launching of a fractionalized NFT project.
The market for fractionalized NFTs is also going upward like NFTs. Though, NFTs are still in the lead yet fractionalized NFTs market too has become a multi-million dollar market. The total market cap of fractionalized NFTs has gone past US$ 212 Million as of 12th December 2021. The major contribution in the market cap of fractionalized NFTs is Doge NFT which is contributing US$ 130 Million therein. After Doge NFT, the second major contributor in the market capital is “Etherrock # 72”.
For the time being, the NFTs market is relying on two branches i.e. usual NFTs sales and fractionalized NFTs sales. It is anticipated that with the passage of time, the NFT market will have more branches such as these ‘fractional NFTs’.