- Fractionalized tokens are NFTs that allow multiple ownership of a single item.
- The market is estimated to have surpassed $200 million in 2021 according to DappRadar.
- The industry is tipped to be the next big thing amid the expansion of the metaverse to the real estate market.
Fractional NFTs are quickly becoming the next big thing in the crypto space according to statistics on DappRadar. The crypto analytics and insights platform, estimates the market to surpass $200 million in 2021.
A fractionalised NFT is simply a regular digital art, file, or collectible token split into several parts, thus allowing more than one person to own a part of it. Analysts believe the concept of fractionalization improves accessibility to the race NFT market.
For instance, if Snoop Dogg’s NFT Collection, were to be fractionalized, several people would be able to own part of the “Decentral Eyes Dogg NFT” that dropped earlier this month.
Last week, e-commerce giant Amazon invested in Dibbs, a fractional sports trading card marketplace.
The Doge NFT is the largest fractionalized NFT by market capitalization, valued at about $122 million at the time of writing. Feisty Doge and Etherrock #72 are the closest with $15.75 million and $14.50 million, respectively.
The fractionalized NFT market could experience exponential growth next year if more regular NFTs issue fractionalized versions to the market. A recent report by Cointelegraph research predicted that overall NFT sales will surpass $17.7 billion by the end of the year.
OpenSea is the largest NFT marketplace, accounting for more than $13 billion to date. DappRadar estimated NFT witnessed over $480 million in sales last week, while another popular platform Axie Infinity sold nearly $90 million for total lifetime sales of about $3.79 billion.
Although the concept of buying tokenised land is not new, the idea could become more popular, promoted by the metaverse adoption in digital land. Investing in a virtual land in the metaverse is one of the most trending topics in the crypto space.
Now, entrepreneurs are intrigued by the same concept applied to real-world assets. Fractionalization enables cost and ownership sharing of expensive assets, allowing investors to own a portion of the asset. Some companies have already embraced this possibility with Futurent, Labs Group, Aqar Chain, and RealT already offering real estate NFT trading.
The fractionalized NFT market pulled back towards $190 million in market capitalization late on Monday after reaching a high of about $212 million on Sunday.
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