An overview of NFT fractionalization protocols

Non-fungible tokens (NFTs) have recently gained momentum in the crypto space, with the weekly trade volume of art and collectibles NFTs exceeding $882 million in the third week of August 2021.

However, as their names suggest, NFTs are inherently non-fungible, non-divisible, and therefore illiquid. The increase in interest over a short period expedited the surge in the average price of the NFT collectible sales given market illiquidity. For instance, the average cost of acquiring a CryptoPunk on the secondary market as of this writing would be more than $450 thousand, a tenfold increase in two months. Many retail investors are priced out of popular NFT collectibles with low supply.