Clear DefinitionsFloor Price (NFT)
1 min read
Pronunciation
[floor prys en-eff-tee]
Analogy
Like the cheapest ticket available for a concert—anyone can buy at that minimum price to secure entry.
Definition
The lowest listed price for any NFT within a given collection on a marketplace. The floor price serves as a liquidity indicator and entry point for new buyers.
Key Points Intro
Floor price reflects market demand and scarcity for an NFT collection.
Key Points
Liquidity signal: Lower floor implies easier entry; higher floor suggests scarcity.
Market sentiment: Rapid floor changes indicate shifting interest.
Bid-ask relation: Floor equals lowest ask; bid floor may be lower.
Collection health: Tracked over time to gauge performance.
Example
The Bored Ape Yacht Club floor price rises from 50 ETH to 60 ETH after a celebrity endorsement, indicating increased demand.
Technical Deep Dive
Marketplaces index `Transfer` and `OrderCreated` events for ERC‑721/1155 contracts. Floor price is computed by querying active sell orders and selecting the minimum `price` field. Off‑chain caches and subgraphs optimize retrieval for UI.
Security Warning
Wash trading can artificially inflate floor prices; verify volume authenticity.
Caveat
Floor price ignores rarity; cheapest items may lack desirable traits.
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