Fracton Protocol, a premier NFT fractionalization platform, has reached an impressive milestone by exceeding $3 billion in trading volume on Kucoin, just 10 months after introducing its fractional HiNFT tokens. This accomplishment has allowed retail traders to access high-value NFT collections and unlocked liquidity in the process.
Despite the significant strides made in the NFT market in recent years, accessing liquidity from collections has remained a considerable challenge. This is primarily due to the indivisible nature of non-fungible tokens. However, Fracton Protocol has transformed this landscape with its pioneering fractionalization solution.
By converting high-value NFTs into smaller, fungible token fractions, Fracton Protocol has enabled anyone to own and trade these assets. This approach has provided retail traders with access to high-value collections, such as BAYC or CryptoPunks, which were previously limited to a select few.
How Fracton Fractionalizes High-Value NFTs
Fracton’s fractionalization infrastructure is built around meta-swap, a tool that converts high-value NFTs like BAYC into 1,000 ERC-1155 tokens, yielding individual BAYC NFTs. Each of these NFTs is further divided into 1,000 ERC-20 tokens known as HiBAYC. This process is applied to all NFT collections using the function, effectively creating Hi-versions of themselves and allowing traders with as little as 1 USDT to own fractions of their favorite collections.
To date, Fracton has fractionalized more than 25 blue-chip NFT collections, making them accessible to retail investors. Some notable examples include CryptoPunks, BAYC, MAYC, Doodles, Azuki, Fidenza, Chromie Squiggles, Otherdeeds, Sandbox LAND, Gazers, and even rare Ethereum Name Service domains such as the 999 Club.
Retail traders interested in fractionalized NFTs can access them through two platforms: Kucoin and Uniswap. Kucoin partnered with Fracton to launch a HiNFT ETF trading zone, where users can trade fractional NFTs on the spot market and participate in regular fractional initial offerings.
HiNFT tokens represent a range of NFT ETFs backed by a basket of on-chain fractionalized NFTs. These tokens allow holders to gain exposure to their respective NFT collections, instead of purchasing individual NFTs. The value of each HiNFT token is determined by the value of the NFTs it represents.
Moreover, the Fracton ecosystem includes a governance token, the Fracton Token (FT), introduced in August, which serves as the primary payment method on the platform and provides access to fractionalized NFTs. The FT token is available on Kucoin.
Expanding NFT Access to a Broader Audience Fracton Protocol’s innovative approach has significantly contributed to the advancement of the NFT market, and its recent achievement is a testament to its success. According to Chido, the community head at Fracton Protocol, who spoke at the recent NFT NYC event, “Reaching this trading volume milestone was no small feat, and we are incredibly proud of our accomplishments.”
Chido further stated, “Our dedicated team has worked tirelessly day and night to make NFT trading accessible, safe, and easy, and this achievement gives us immense confidence and satisfaction in the work we’ve been doing. We will introduce even more innovative products and features, further enhancing the Fracton Protocol experience for our users.”