Fractional NFT Marketplace Development - Everything You Need to Know

• By Sophia Wilson
• 18-04-2023
• Blockchain

NFTs (Non-Fungible Tokens) have created quite a stir in the digital world, altering how we explore and benefit from these digital assets. Internet marketplaces dedicated to NFTs have evolved as safe havens for collectors, makers, and aficionados to buy, sell, and exchange these one-of-a-kind tokens. Yet the inventiveness does not end there, especially with the emerging innovation of the fractional NFT marketplace.

A fractional NFT marketplace like Ommniverse and other emerging platforms are revolutionizing how investors invest in high-value NFTs. Now imagine, back when a certain limited collection of NFT projects added their name in history by selling for hefty amounts and values, especially including CryptoPunks and BoredApeYacht - how great would it be to purchase those digital assets at affordable rates?

While it wasn’t possible back then, limiting low-budget investors from strengthening their collection of digital assets - now you can buy a fraction of high-value NFTs through fractional NFT marketplaces. This unique fractional NFT model has intrigued endless investors and NFT enthusiasts globally. You know what this means, right?

It’s a great time to invest in a fractional NFT marketplace with the help of the right software development company. But before you head to that process, why not explore all about the NFT marketplace development process, growing value, and benefits of our fractional NFT, making it a solid NFT marketplace solution?

Overview of the NFT Marketplace Growth Till 2023:

With the fractional NFT marketplace as well as the overall NFT marketplace evolving since its emergence in 2021, this ever-growing marketplace is creating new records in history. For a clearer understanding, let’s go ahead and explore highlights of some prominent accomplishments and growth benchmarks that the NFT market has achieved over the years.

• Today, the NFT market is valued at more than $22 billion.
• Since 2021, the industry has increased 220 times, resulting in sales of $25 billion only in 2021.
• By 2025, the NFT Market will be nearing a value of $80 billion.
• So far, the most expensive NFT collection was sold for $91.8 million.
• Every month, NFT sales total around $1.8 billion.
• Every week, between 15,000 and 50,000 NFTs are sold.
• The first 100 NFTs sold had a combined value of $16.7 billion.
• NFT sales have steadied at around $20 million per week.
• Worldwide NFT sales are around $1.8 billion per month.
• Half of all NFT sales are under $200.

Fractional NFT Marketplace: What It Is, How It Works, and Why You Should Invest In One?

Definition:

A fractional NFT is a portion of a single NFT or a portfolio of NFTs. You can buy any fraction of an NFT, and that fraction represents your ownership of the entire NFT.

Notably, in November 2021, for instance, $4.1 million was paid for The Dodge NFT, and since then, it has been subdivided into 16 billion pieces. As of this writing, its inferred value has increased to $13.9 million. Each fraction may be bought right now for less than a penny.

How It Works:

The basic working procedure of the fractional NFT marketplace is different from the mainstream NFT marketplace working criteria. NFTs are built with token standards that support and maintain their characteristics. However, in contrast, fractional NFTs are locked with smart contracts. This smart contract then splits the NFT into various pieces/fractions, i.e., ERC-20 tokens. With ERC-20 being a fungible token, the owner of this and other fractions of NFTs will be called a partial owner of the overall NFT.

Later, when this fraction is bought, the buyer will hold only the fraction of that NFT. Moreover, the different fractions of a single NFT can be put to sale in various ways, from selling at a set period to being available in the market until the last fraction of the same NFT is also purchased. Precisely, in this entire process, the F-NFT marketplace will serve as the center of the trading and staking process of all the fractional NFTs available on the marketplace.

Here’s a short breakdown of how fractional NFTs work in the graph below:

Why Invest In One?

As the concept spreads, we should expect a significant increase in funding for projects incorporating the NFT in metaverse. Previously, Decentraland and Sandbox, among others, have entered this industry.

Now with F-NFTs, businesses, individuals, and even small organizations can join together to purchase virtual land and other equivalent digital assets in the virtual world.

Thus, what better moment than now to enter the NFT metaverse via a clever and inventive fractionalized NFT marketplace?

Features of Fractionalized NFT Marketplace:

Considering fractionalized NFT as an NFT marketplace solution to make a smart and profitable investment is the way to step into the NFT world today. However, before you do that, it's important to be familiar with the primary features that make the fractional NFT marketplace a smart development approach that promises future growth.

So without further ado, let’s go ahead and explore some prominent features of the fractional NFT marketplace.

Ever-Growing Market Value

The value of non-fiat currencies (NFTs) has skyrocketed over time. NFT investors are only allowed to take on substantial financial obligations in order to participate. Because of this, only a very small fraction of investors can actually afford an NFT.

Due to this reason, the next stage of the NFT will not be entered until all participants have sufficient capital to contribute. But, because a fractionalized NFT is less expensive, there is a good chance that their value will increase at a rate that is both quicker and more consistent.

Liquidity on the Secondary Market

Because of their increased potential and worth, non-financial assets (NFTs) are now valued assets. The operators of the NFT marketplace place a greater emphasis on making quick transactions than they do on holding auctions.

As a result, the process of obtaining liquidity is drawn out. Because of this, NFT faces a significant challenge. As a result of the fact that fractionalized non-fungible tokens (NFTs) are now easily accessible for investors and NFT enthusiasts at reasonable rates (fractions of the real market value of an NFT), the sales and liquidity of various limited NFTs are expected to increase in the coming times.

To be more specific, there are a far greater number of people who can afford an investment of $1,000 in a portion of NFT as opposed to $10 million for the entire NFT. This has the potential to make the NFT market more liquid.

Hence, fractionalization has the potential to be a supplementary service that, if made available by NFT marketplaces, has the potential to boost both liquidity and engagement with the platform.

Usage Restriction Problems Have Been Fixed

NFTs are only able to be used for the purpose for which they were intended and cannot be sold. Yet, these NFTs are now easily available and can be put into various functions. NFTs, on the other hand, will never be able to evolve into tokens that can be used across various cryptocurrency and digital market platforms.

On the other hand, fractional NFT marketplace development can be utilized in developing investment products that offer indirect exposure to the NFT market. This, in turn, can lead to a growth in the market capitalization of NFTs. This may allow traditional investing institutions and crypto-based organizations to develop a new product.

Having said that, the JPG NFT index is a well-known example of this, and it is a coin that can be invested in. This coin was created by using fractionalized NFTs to produce an investable product that provides exposure to blue-chip NFTs.

Auctioning System

You can use the auction system, one of the finest ways to determine how much a given object is worth. Even though the fractionalized NFT has its price mechanism, you can still use it. This is because the process selects, among all of the bidders who submit an offer, the one who is ready to pay the highest price.

Simply said, the sale of fractions of a non-fungible token (NFT) can be helpful in price discovery since it can be used to estimate the price that collectors and investors are prepared to pay for the NFT. This information can then be used to determine the value of the NFT.

Risk Diversification

A collector's portfolio of NFTs can be diversified with less amount of capital by using fractional non-fungible tokens (NFTs). The process of NFT fractionalization is not restricted to the fractionation of a single NFT or collection; rather, a number of NFTs and collections can be mixed in this process.

Considering this, it is possible to purchase a portion of a diverse set of fractional NFTs in gaming or entertainment in order to diversify the concentration of the portfolio among a variety of collections and NFT kinds.

Fractional NFTs Types and Trends of 2023:

As awareness of the concept grows, fractionalized NFTs and their market is also set to grow in accordance with the following niches and trends:

F-NFTs in Web3 Gaming

You can buy, trade, and hold a variety of in-game commodities, some of which are NFTs, in the vast majority of play-to-earn cryptocurrency games. Players in these online games can pool their resources and exchange expensive in-game items by investing in their fractionalized shares.

F-NFTS in Real-Estate

When transforming a real estate asset into an NFT, immediate ownership settlement and a streamlined transaction procedure are provided. Furthermore, because the ownership and rights history can be directly recorded on a blockchain, verifying transaction information is often quick and simple.

However, in these NFTs, the only difference is that F-NFTs permit multiple parties to share property ownership rather than just one. Their application will eventually make real estate investing more understandable and accessible.

Development Process of Fractional NFT Marketplace:

When investors and NFT collectors think about where to buy fractional NFTs, popular fractional NFT marketplaces like Ommniverse are your go-to fractional investment solution. But what goes into the development of these marketplaces that makes them actionable, reliable, secure, and ready-to-auction and sell fractions of NFTs? Let’s go ahead and explore the development process of such platforms below in detail.

Understanding the Vision/Demands of the Client and the Platform

Our executives pay close attention to our clients and their business objectives. And what research have they conducted in order to launch the NFT marketplace? The development and design team delves into the project and the specifications set forth by our client.

Using the Fractional NFT Vision in Marketplace Development

It is critical to carry out the strategy flawlessly. When you have developers with nearly a decade of experience, you can expect them to produce perfection on the project. Each business has its own unique selling points (USPs) for attracting consumers to its platform, and we can execute the plan flawlessly and on time.

Moreover, while installing a Fractional NFT Marketplace Development, keep your company's needs in mind. A good planning stage is required to bring out the desired attributes in your desired method.

Putting the Created Platform to the Test

At this point, the entire development process will be tested and allowed to operate in real time. At this point, you can tell if your progress has been successful. A high level of monitoring is required to achieve excellence.

Final Platform Functionality and Quality Assessment

When the development stage is complete, you should examine and evaluate the quality of the Fractional NFT Marketplace. To accomplish this, run various tests to ensure the dependability of the created arrangement. In the event of a malfunction, it is critical to address any issues as soon as possible.

Conclusion

NFT is more than just a digital asset in today’s ever-growing crypto world. With many notable projects making history with the enormous value in sales of their NFT collections, there’s no doubt that you can make a fortune in this industry today - even with great competition.

But with many growing NFT artists and projects struggling to find platforms where they can sell or auction their collections, why not be the one to offer that platform?

Now with the limited fractionalized NFT platforms available today, it is still not too late for you to step into this industry and make the most of it.