Lofty, a decentralized real estate tokenization platform, has reached a new milestone with its total value locked (TVL) climbing to $37.6 million. The platform allows users to buy fractional ownership in rental properties, benefiting from daily rent payouts, and is built on the Algorand blockchain, launched in 2019.
Lofty’s model of fractionalized ownership makes real estate investing more accessible, allowing investors to diversify across multiple properties. The platform currently lists over 100 properties, with prices ranging from $40,000 to $2.5 million. Each property is split into thousands of tokens, with token prices varying from $20 to $70, enabling users to own small shares of high-value assets.
While some properties on Lofty are bought for potential price appreciation, many generate rental yields, with some returns reaching as high as 31% annually. For example, a $1.1 million property in New Mexico is available for tokenized ownership, with tokens priced at $59.30—down from $66 earlier in September—offering a rental yield of over 28%, one of the highest on the platform.
Lofty’s TVL has also benefited from a recovery in the price of Algorand’s native cryptocurrency, ALGO, which investors can use alongside USDC to buy fractional real estate shares.
Currently, Lofty ranks as the second-largest decentralized app (dapp) on the Algorand blockchain, which holds a TVL of $67 million. Although Algorand’s overall TVL is down from a peak of $293 million earlier this year, Lofty’s contributions are excluded from Algorand’s TVL to avoid double counting, as tracked by DefiLlama.
