What Is ‘Fractionalization’ of an NFT?
Fractionalization is the process of dividing a single, high-value Non-Fungible Token (NFT) into multiple fungible tokens. This allows multiple investors to own a small share of the original, expensive NFT.
It increases liquidity, lowers the barrier to entry for investors, and enables price discovery. The fractionalized tokens are typically governed by a smart contract that holds the original NFT.