NFT Floor Price: Non-fungible tokens (NFTs) are unique digital assets that possess various attributes that make them rare or desirable. However, these attributes also make it difficult to accurately determine the value of an NFT. Unlike tangible assets like artworks or physical collectibles, which have fixed values, it can be challenging for collectors and investors to decide whether an NFT is worth purchasing. This is where NFT metrics, such as the floor price, come into play. In this article, we will discuss what a floor price is, how it is calculated, what to consider when evaluating an NFT, and where you can find the floor price for NFTs on Binance.
What Is An NFT Floor Price?
The floor price is the lowest price of an NFT within a particular collection and is commonly used by collectors as a metric to assess a project. For instance, the floor price of a Rh!noX NFT at the time of writing is 816.92 USD. This means that if you want to purchase a Rh!noX NFT, the cheapest option available is 816.92 USD.
How is the Floor Price Calculated?
The floor price for an NFT is typically set by the individuals who own NFTs within a particular project. As an NFT project becomes more popular, the floor price tends to increase. If there is a sudden decrease in a project’s floor price, it may suggest that the project is losing traction or demand.
- Also Read: What Is Ethereum and How Does It Work?
What Does Sweeping the Floor Mean In The NFT Space?
“Sweeping the floor” is a term that refers to the act of purchasing digital assets in large quantities, specifically assets that are part of a collection. In the NFT space, this term can apply to both project owners and buyers. If project owners sweep the floor, they are purchasing all of their NFTs at the floor price.
When buyers sweep the floor, it means they have either purchased all of the available NFTs in a project or a significant number of them. Both of these actions can potentially manipulate the floor price.
How To Avoid Floor Price Manipulation
Purchasing NFTs at the floor price can be a good strategy for newcomers to an NFT project, but it’s important to be aware that the floor price can be manipulated. It is not uncommon for newly minted NFT projects with high potential to be aggressively bought by an individual or group in order to artificially drive up demand. After the sweep, the buyer(s) can resell these NFTs at a higher floor price, similar to how scalpers purchase event tickets and sell them at a higher price.
It’s also possible for a project to arrange a sweep in order to raise the collection’s floor price and overall value, so be cautious of projects without strong communities where the NFTs have been swept. To avoid falling victim to manipulated floor prices, it is always a good idea to review the transaction history of the NFT you want to purchase, do your own research (DYOR) to assess the project’s long-term value, and join the project’s Discord and Telegram groups to see if their communities are legitimate and active. Additionally, you can check the project’s social media following to gather more information to help inform your decision about investing in NFTs.
Where Can You Check The NFT Floor Price Chart & History On Binance NFT?
There are two easy ways to find the floor price of an NFT collection on the Binance NFT Marketplace. One way is to go to the Top Collections under Ranking, where you can see a list of popular NFT collections and their corresponding floor prices.
Alternatively, you can search for a specific collection by entering its name in the search bar, and the floor price will be displayed prominently at the top of the page. Additionally, you can see the real-time changes in the floor price on the Binance NFT marketplace, as indicated by the percentage change.
The value of NFTs is largely determined by market forces, and it is difficult to accurately predict the future of the NFT space. However, you can improve your chances of making successful purchases by using metrics like the floor price and thoroughly researching projects before investing. Doing your due diligence and making informed decisions can help guide your buying strategy and increase your chances of success in the NFT market.