What Is the Primary Benefit of Fractionalizing an NFT for the Financial Market?

The primary benefit is a significant increase in liquidity and accessibility. By dividing a high-value, illiquid NFT into many fungible, tradable ERC-20 shares, it opens the asset up to a much wider pool of investors who could not afford the full price.

This lowers the barrier to entry for investment in unique assets, making the overall market more efficient. It also allows the original owner to unlock capital without selling the entire asset.