What Is the Concept of “Fractionalization” for ERC-721 Assets?
Fractionalization is the process of splitting ownership of a single, high-value ERC-721 token (NFT) into multiple, fungible ERC-20 tokens. This makes the asset more accessible and liquid by lowering the barrier to entry for investors.
For example, a single expensive NFT can be divided into 1,000 ERC-20 tokens, allowing 1,000 people to own a piece of it.