Within the blockchain world, there’s endless talk about the importance of decentralization. But there’s a by-product from DeFi’s boom that is little talked about.
Fractionalization is an unavoidable consequence of the innovations we’ve seen over the past decade — and when implemented correctly, companies and individuals can benefit.
For example, it’s now possible to buy a small fraction of Amazon stock, potentially making it more affordable to millions of investors. With a single share now costing more than $3,000, this can be a high barrier to entry for most.
The explosion in non-fungible tokens has created an urgent need for such fractionalization to be applied to crypto collectibles — especially when NFTs are selling for hundreds of thousands, if not millions, of dollars.
A substantial number of NFTs are now valued at a price that’s way higher than the average customer can afford. Fractionalization paves the way for these retail investors to engage with the market, rather than remain idle within the DeFi