What is the NFT floor price?
The floor price is the lowest price of NFTs in NFT projects.
Floor price is one of the key metrics that collectors and investors consider when assessing the intrinsic value of NFTs.
If you are surrounded by many NFT enthusiasts, you may hear the term “floor price” in the conversation.
Each NFT is unique and has different properties that make it rare or highly sought after. These properties also make the precise value of NFTs difficult to determine.
While tangible assets such as art, or physical collectibles such as game cards have clear value, it is difficult for collectors and investors who want to buy NFTs to determine whether NFTs are worth the money. This is where NFT indicators such as floor prices come in.
This article will explain what floor price is, how to calculate floor price, what to pay attention to, and how to find floor price in Binance NFT.
What is the NFT floor price?
Floor price refers to the lowest price of an NFT in a series and is one of the most widely used metrics by collectors when evaluating an item.
For example, the STEPN x ASICS NFT sneaker has a floor price of $14,767.70 at the time of writing. This means that if you want to buy STEPN x ASICS NFT sneakers, $14,767.70 is your minimum threshold to enter the program.
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How to calculate the floor price?
The owner of the NFT in the project sets the floor price – the more popular the NFT project, the higher the floor price. The plummeting floor prices of projects may indicate that NFT projects are losing their appeal.
Interested in learning about other NFT evaluation metrics? For more information, please read How to Assess the Value of NFTs
In the NFT field, what does “sweeping the floor” mean?
Usually, “sweeping the floor” refers to buying digital assets in bulk, especially some assets belonging to a series.
In the field of NFTs, sweeping can be applied to project holders and buyers. If project holders sweep the floor, it means they buy all NFTs at the floor price. When a buyer sweeps the floor, it either means they bought all the NFTs currently in the project, or they bought many of them. Both point to potential manipulation of floor prices.
How to avoid floor price manipulation
For new users joining NFT projects, while buying the floor price may be a reliable entry strategy, the floor price may be manipulated.
It is not uncommon for individuals or groups to actively buy into newly minted NFT projects with high potential, artificially driving demand. After sweeping the floor, buyers can sell these newly purchased NFTs at a higher floor price, similar to how scalpers buy event tickets and resell them at a higher price. Again, be careful with projects without large communities, whose NFTs have been “swept up”. In cases such as these, the project may have scheduled a sweep to increase the floor price and overall value of the collection.
In order to avoid falling into the floor price that is swept and manipulated, please regularly check the transaction history of the NFT you want to buy, and do your own research to evaluate the long-term value of the project. Join their Discord and Telegram groups; see if their community is legit, such as their followers on social media, to help with decisions around NFT investments.
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In Binance NFT, how to find NFT floor price chart and history?
In Binance NFT Market, you can easily find the floor price of NFT series in two ways. One way is to head to the top series under the leaderboard, where you can see a list of popular NFT series and their floor prices.
If you want to find the floor price of a specific series, just enter the name of the NFT product series in the search bar, and you can see the floor price displayed at the top at a glance. Additionally, in the Binance NFT Marketplace, you can also view real-time changes in floor prices, as shown by percentage changes.
The value of NFTs is mainly determined by market forces, and the future of the NFT field cannot be accurately predicted. However, you can increase your chances of success by using metrics such as floor price, and conducting due diligence to guide your buying strategy.
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Comment by Hans
April 24, 2024
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