How Does the Valuation of a Fractionalized NFT Share Differ from a Full NFT?

The valuation of a fractionalized share is based on the implied market capitalization of the entire NFT, which is determined by the collective trading price of its fungible shares. However, the sum of the fractionalized parts often trades at a discount to the price of the full, non-fractionalized NFT.

This "fractionalization discount" is due to the loss of unique control, the administrative fees of the vault, and the reduced scarcity of the individual shares. The full NFT's value is often higher due to the premium associated with complete, unique ownership.