What Is Floor Price – Ultimate Guide To NFT Metrics

To begin with, we discuss NFTs before discussing Floor Price briefly. Non-fungible tokens, unlike fungible ones, stand for the opposite of fungible tokens. An NFT cannot be traded with another token as though it was equal in value, unlike fungible tokens such as Bitcoin, Ethereum, Cardano, and Dogecoin. Due to NFTs being smart contracts, they each have their specific slots on the blockchain. NFTs have a long history, but we are only going to discuss the ERC-721 token standard. We see NFT today as a result of this token standard.

Nevertheless, Larva Labs did the unthinkable years before this standard made its debut. In 2017, the CryptoPunks collection became the first to include 10,000 unique art pieces. The CryptoPunks was the inspiration for the ERC-721 token standard. However, it should be noted that CryptoPunks is not the first NFT collection, but it was the first NFT minted in 2014.

 

How is floor price determined?

How does the floor price function, and what does it mean? The name implies what it does. NFTs below Floor Price is the cheapest NFTs within the collection. The phrase Entry Price can sometimes be used interchangeably with Floor Price, which means the same thing. Imagine an NFT collection as a collection of hoodies belonging to the same brand. You will likely find many different options when you go to the store of that brand. 

Although some of the same brand’s hoodies are rarer and have different expensive features, there are still some in that same brand that are costly. The hoodies do not all serve the same purpose, so they are not priced the same way. NFTs from the same collection serve the same purpose as well. This means that Floor Price is the cheapest hoodie from the brand or collection you like or the cheapest NFT from the collection you like. 

For instance, the bored Ape Yacht Club (BAYC) collection has a floor price of *100 (* is Ethereum). Based on Ethereum’s current price, the lowest priced Bored Ape in the BAYC collection is $289,000 or *100. Even the Floor Price can swing up or down unexpectedly, so it must be kept in mind.

 

Guide To NFT Metrics – What Is Floor Price?

To become a member of a project, i.e., owning an NFT, you must pay a floor price, which is the minimum amount you can invest. Owners of NFTs in specific projects, who list their units for sale at a lower price than everyone else within the project, set the floor price. Economics uses the floor price to indicate how low the price of a good, service or commodity can be. The floor price is one of the most popular metrics for determining the value of projects in the NFT market. For instance, Bored Ape Yacht Club, one of the most highly regarded projects, has a price floor of 39.99 Ethereum at the time of writing.

This means that anybody interested in acquiring a Bored Ape can do so for 39.99 ETH; this is the lowest way to participate in the project. Sending an offer is another way for a buyer to get a Bored Ape for less than the floor price; however, this is extremely unlikely to be accepted because it is unconvincing for the seller to accept it.

Because OpenSea works in a style similar to eBay, buyers can send time-sensitive bids or offers, and these offer prices can ((including below the floor price, though this is extremely unlikely to be accepted). Buying an NFT at the floor price is common in order to reap the benefits and utility of ownership. NFTs inside a project that is being sold at or near floor pricing generally contain properties/traits that are not uncommon and so do not contribute value.

 

How to  Determine The Worth Of An NFT?

A number of factors determine an NFT’s worth. Rarity is one aspect in particular, but it is not the only one. The price is influenced by the NFT’s functionality, hype, and other factors.

As a general statement, there are a number of factors that contribute to the value of an NFT. One of them is the NFT’s rarity and characteristics. I am going to rarity. Tools, choosing All Collections, entering the project’s name, and then the NFT’s ID is one way to check.

Not every endeavor is one-of-a-kind. Regardless of how many there are, the more well-known ones are the most useful. NFTexplained. Top Dog Beach Club will be used as an example.

Top Dog #3002 is now ranked 497th out of 10,000 Top Dogs in terms of rarity.

You can see from the screenshot taken by NFTexplained.info that this specific Top Dog is one of 101 with a gold face. (As evidenced by the first attribute to occur)

Because of how visually beautiful the Top Dog is, this particular NFT sold for an incredible 12 Ethereum, proving that rarity isn’t everything. This demonstrates the importance of aesthetics and personal preferences in any art purchase.

 

Frequently Asked Questions

Explain on Daily NFT floor price up

The floor price of any sort of NFT trading was roughly ten times higher in September 2021 than it was in early June 2021. This suggests that NFT trading grew in popularity throughout that time period. The floor price, often known as the “price floor,” is a phrase borrowed from commodities trading that refers to the lowest price, rather than the average, at which an NFT can be purchased. 

Floor price can disclose the least value a particular NFT sells for, and it was only introduced in the summer of 2021 as one of the most sought new features within the crypto community. Buyers must factor in other fees, like the Ethereum gas price or transaction fee, because prices are expressed in Ethereum (ETH).

How can you track the nft floor price?

The NFT tracking tool for portfolio floor prices is quite useful because it saves NFT holders a lot of time. FlooredApe is a web application now in open beta. It means that everyone can use and access it for free.

The community of token holders who are currently accessible for minting is driving the project’s development. It allows you to see the collection overview and a full analysis of each collection on the tool itself. A floor price chart will appear when you tap on a certain collection.

 

Conclusion

With this article, we summed up all the possible terms and concepts under the NFT Metrics particularly on Floor price. We also mentioned how the floor price was determined in short to get a better understanding. Even Though you have any queries, reach us with the comment section below. We will get you with the proper answers as soon as possible.

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