Have you wanted an nft you couldn’t afford and wish you could buy a piece of it? We’ve analyzed popular fractional nft platforms to identify the best fractionalized nft examples on the market and better understand what they sell for on average. It’s a growing business model nft projects are taking on and we go in-depth on the fractionalization process.
Understanding how nft fractionization works will become essential in the future as the younger generations, such as Gen Z, believe NFTs will make 9% of the most significant returns on investments in 10 years, according to Investopedia.
Our article discusses what you need to know about fractional NFTs from both the creator and investor perspectives.
Learn which nft fractional marketplaces are successful and reliable and which notable blue-chip nft projects have a fractional option.
Let’s dive in with the basics:
What is a Fractional NFT?
Fractionalized NFTs are also known as ‘F-NFTs’ and use the process of fractionalization to split ownership of NFTs into smaller, more affordable fractions.
Like ‘shares’ of a company, it creates an opportunity for anyone to own a portion of a Non-fungible token digital asset or collectible through co-ownership.
Co-ownership of an nft makes it affordable to buy high-tier assets that you usually wouldn’t be able to access unless you had millions of dollars.
Collectors who list an NFT to become fractionalized set the price, and the collectible goes into a vault which is decentralized and audited by intelligent contracts.
However, the price of fractional nft can change based on the liquidity added and the overall supply and demand. Therefore, a reserve price is the weighted average of all owners who have set a price.
Here are some fractionalized NFT examples:
|ProjectName||Vaulted Items||Avg. Fractions||Avg. Sold For (ETH)||Avg. Sold For (USD)|
|Mutant Ape Yacht Club”||4||48,590.13||40||$131,052|
|Bored Ape Yacht Club”||9||195,556||124||$406,311|
How NFT Fractionalization Works
As NFTs become more extremely valuable, fractionalizing them will become more desirable.
For example, if you had an NFT worth $100K, you can issue 1,000 fractions to other 1,000 collectors at $100 plus gas fees. Each collector will own 1% of the NFT.
In our example, Imagine the co-owners take a vote and decide to auction off that non-fungible digital collectible and sell it at $250K resulting in a $150K profit. Each owner would earn $1,500 minus gas fees and transaction fees for their 1% ownership.
Can You Buy Fractional NFTs? (How to Buy F-NFTs)
Buying Fractional NFTs can be done on the Ethereum blockchain and requires using fractional nft marketplaces. Fractional platforms help facilitate the buying, selling, and minting fractionalized NFTs.
When you want to buy a portion or fraction of an nft, you need to pick a reliable and credible fractional nft marketplace.
Best Fractionalized NFT Platforms
1. Fractional – (https://fractional.art/)
A popular fractional nft platform used among collectors is ‘fractional.art’, where you can co-own an nft digital collectible from some of the most well-known collections. It allows NFTs to become represented by billions of ERC-20 tokens. Over 39,000 wallets own fractions, according to their platform.
2. Liquid Marketplace – (https://www.liquidmarketplace.io/)
A new nft marketplace launched by Logan Paul is called ‘LiquidMarketplace.io.’ It specializes in the fractionalization of physical and digital collectibles, with the ability to earn royalties, unlike any other marketplace.
Currently offering exclusive top tier physical collectibles from his collection, such as
1. Logan Paul’s Personal WOTC Pokémon 1st Edition Base Set Booster Box
2. PSA 8 Pikachu Illustrator
Although it’s not just from his collection, they also have Kobie Bryant, Lebron James, and Michael Jordan, each worth millions.
Items on Liquid Marketplace become vaulted in a secure location because they are no longer only one person’s ownership once fractionalized.
What sets this nft fractionalization platform apart is how they allow real-life assets such as pokemon cards, basketball cards, and more to be converted into fractional tokens.
Learn more on how to use liquid marketplace from this fellow YouTuber’s first impression of how it works:
Fractionalization is only for expensive NFTs until gas prices fall because if you were to sell an NFT for less than an Ethereum (ETH), gas fees would eat into the profit.
More specifically, when you bid with your cryptocurrency like Ethereum and make the purchase, you convert it into fractions using ERC-20 tokens.
Can You Sell Fractional NFTs? (How to Sell F-NFTs)
Fraction owners can list an NFT at any time on fractional. Art. Some will get verified by fractional.art, and others will not, depending on if they are real.
You can also vote to determine if NFT fraction holders should put up the digital collectible for auction and at what price. The votes allow users to suggest a listing price, and it uses a weighted average to come up with the right price.
If someone buys the nft, everyone who has a fraction of it will earn the profit. You can also set a 5% curator fee inserts inflation by the number of years when you create the listing.
Best Fractionalized NFT Examples List (F-NFTs)
1. Bored Ape Yacht Club
Bored Ape Yacht Club fractionalized apes are increasing in popularity and selling for over $400K each through co-ownership. Most collectors seek to get their hands on a bored ape for the exclusive yacht parties and engage with like-minded individuals.
- Highest Number of Fractions: 597,548
- Highest Sold for in ETH: 126.5
2. Mutant Ape Yacht Club
A spin-off of the original Bored Ape Yacht Club, these are only accessible to those who have previously or currently own bored apes’ non-fungible token. Now through co-ownership, you can own one of these exclusively generated NFTs.
- Highest Number of Fractions: 169927.32
- Highest Sold for in ETH: 57
CryptoPunks are the first-ever non-fungible tokens available on the blockchain and are the most expensive. These are selling on average over $5 Million each through co-ownership. So own a piece of history when getting a fractional crypto punk for your collection.
- Highest Number of Fractions: 178158.641
- Highest Sold for in ETH: 8836.9131
4. Cool Cats
Cool Cats are new and more affordable than most blue-chip collectibles. On average, it’s selling for $70K+ through co-ownership—a great nft project to include in your collection.
- Highest Number of Fractions: 46,900.13
- Highest Sold for in ETH: 25
5. Pudgy Penguins
Pudgy Penguins took inspiration from other non-fungible tokens and sold for, on average, over $40K through co-ownership. However, we’ve only found three sold and vaulted via fractional.art, suggesting it’s still growing in popularity.
- Highest Number of Fractions: 5,000,000
- Highest Sold for in ETH: 34
Disclaimer: We analyzed only verified and sold non-fungible tokens on fractional.art and used the USD dollar of 3,273.85 for estimations. Any listings within the collection sold for zero dollars are not in the analysis, and each item must have had a greater than .01 fraction.
Trending Fractionalized NFT Examples List (F-NFTs)
These are the top performing fractional nfts available:
- Fractions: 72,000,046,621.005
- Implied Valuation: 2.7K ETH ~8.6M USD
2. The Doge
- Fractions: 16,969,696,969
- Implied Valuation: ETH 23.6K ~ 75.9M USD
3. White Rabbit
- Fractions: 69,420,420
- Implied Valuation: ETH 16.4K ~ 52.7M USD
4. Angry Doge
- Fractions: 100,000,000,000
- Implied Valuation: ETH 944.86 ~ 3.0M USD
5. The Crypt
- Fractions: 588,830,000
- Implied Valuation: 894.65 ETH ~2.9M
Disclaimer: Fractional.art tracks the trending NFTs implied valuation for vaulted collections, which are constantly changing, and the list above is updated based on the top popularity of 2022.
Why Buy Fractionalized NFTs
It’s still early for fractionalized NFTs business model to develop; however, it looks to become the next big trend. If Open Sea were to find a way to incorporate fractionalization of NFTs through co-ownership, then most of these marketplaces would need to innovate more.
However, fractional nfts continue to increase in popularity and demand as an overall concept.
NFT fractionalization enables greater liquidity and, by extension, endless possibilities for investment strategies. Moreover, it opens up the market to a new audience of people since they can now afford these top-tier assets.
Here’s how it impacts you:
For Investors Who Want Fractional NFTs
It allows the introduction of new NFTs, which wouldn’t usually be attainable or would have got priced out of initially. Allows you to spend less money and gain more significant returns when the nft sells
For example, if you bought a Cool Cats NFT for 15 ETH and sold fractions to it via these platforms, you can still use NFT as your avatar even if you sold fractions to others.
For Collectors Who Want Fractional NFTs
It gives the opportunity to collectively bid on NFTs, which increases your chances of obtaining ownership when it drops.
Once you have a fraction or portion of the NFT, you can now use it as your profile picture since you own it. Allows you to compete with ‘whales,’ those with significant capital to invest in non-fungible token projects.
No matter how you see it, fractionalization and non-fungible tokens stay. So get ahead of the curve by becoming crypto literate, and you’ll continue to have a competitive advantage in this space.
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