Surge in NFT Prices Pushes Along Fractionalization

  • Surge in interest in digital art and non-fungible tokens is promoting the rise of fractionalization of holding NFTs  
  • Digital creations built atop the blockchain lend themselves well to fractionalization more so than physical creations like oil paintings 
Can’t afford a US$69.3 million Beeple? How about owning a fraction of one?  
With non-fungible token (“NFT”) and digital art having taken the cryptosphere by storm in 2021 and with pieces such as Beeple’s “Everydays: The First 5000 Days” fetching a record-breaking US$69.3 million, not everyone has pockets deep enough to bid on the burgeoning world of cryptocurrency art.
But that’s what cryptocurrencies were meant to empower anyway wasn’t it? Decentralization and fractional ownership.
Emerging NFT projects are committing themselves to lowering barriers to entry for artists, creators and photographers — making it easier for them to mint their own NFTs and also enabling access to a wider audience by making it possible for buyers to share ownership of an NFT.
Whereas it’s probably not possible to share the ownership of a Monet – would you hang it somewhere on odd days and then hang it somewhere else on even ones? – it’s entirely possible to fractionalize ownership for NFTs, it’s what the blockchain was built for.
Owning just a portion of a piece of digital art is an approach becoming more appealing to collectors, as a way to offer shared ownership.
A new decentralized project called Fractional will allow NFT owners to mint tokenized fractional ownership of their pieces facilitating the buying and selling of percentages of the full NFT.
Additionally, fractionalizing allows for the NFT holder to realize some liquidity from their asset without selling the entire piece.
The platform will also enable users to fractionalize entire collections of NFTs and release them under one shared ownership token allowing those with less knowledge of the scene to invest in digital art compiled by more renowned collectors.
An index NFT if you will.
Another project called DAOfi has launched a decentralized exchange forked from Uniswap for the trading of fractionalized NFTs.
Designed to solve the liquidity problem in secondary markets for NFTs whereby NFT owners have to wait for someone to bid or buy at an asking price for a single piece, DAOfi borrows some of the concepts from decentralized finance, such as automatic market making and liquidity pools to ensure that a “live” market for NFTs exist. 

Join our Panel Discussion: “Digital Assets – Reshaping Finance and the Economy” at World Family Office Forum 2021

✅ Panelists:

  1. Michael J. Saylor, Chairman & CEO, MicroStrategy, Inc.
  2. Patrick Tan, CEO & General Counsel, Novum Alpha
  3. Peter Habermacher, CEO & Co-Founder, Aaro Capital
  4. Raoul Pal, Co-Founder, Real Vision
  • Bitcoin – What institutional adoption means for investors?
  • The problem with Fiat money and how Central Banks could evolve?
  • How does Ethereum differ to Bitcoin? What is DeFi?
  • Why should Family Offices take Crypto seriously? Best practice approach

    ✅ Date & Time: Thursday, 25 March 2021 – 14:00 CET (Central European Time)
    ✅ Free registration here:


Novum Digital Asset Alpha is a digital asset quantitative trading firm.

Exclusive access to Novum Digital Asset Alpha’s Daily Analysis is made in conjunction with Bitcoin Malaysia.

The information and thoughts laid out in this analysis are strictly for information purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be in violation of any local laws.

It does not constitute a recommendation or take into account the particular allocation objectives, financial conditions, or needs of specific individuals.

For more information about Novum Digital Asset Alpha, please click on the image below:

Leave a comment

5 × four =

This site uses Akismet to reduce spam. Learn how your comment data is processed.