What is NFT Price Floor? Non Fungible Token Floor Price Help
NFT price floor is the term used to describe the least expensive NFT amongst a set NFT collection. For example, if the least expensive Bored Ape on OpenSea is selling for 83 Ethereum, then the price floor for The Bored Ape Yacht Club would be 83. To figure out the minimum value of the project, you multiple the available items by the floor. For this example, there are 10,000 Bored Apes. It is a big leap to assume that all of them would sell for 83 Eth if they all went on sale at the same time. Assuming there is still scarcity, you mulitple 83 x 10,000 and you get a project price floor of 830,000 Eth. At a current value of $3300 US Dollars, that makes the price floor of Bored Ape 2.7 billion US Dollars. There are only 6100 address holders. At most, 6100 people in the entire world own a Bored Ape. It is the most exclusive made up club in the Web3 space followed closely by Crypto Punks.
Why do people care about Price Floor? If you are buying NFTs at the bottom and then the bottom goes up, you can make money very quick money. For example, 2 weeks ago the price floor for Bored Ape was 60 Eth. You could have bought one 16 days ago for 60 and you could sell it today for 83 Eth which is the current price floor.
For price floor information, I primarily go to Open Sea and NFTpricefloor.com
One thing to consider in addition to the price floor is that when you sell an NFT there are fees you didn't expect. There are gas fees and percentage royalty fees to keep in mind. If you sell something or 10 Eth, you will be lucky to get 9 into your actual wallet. There may be ways to do transactions for less on Ethereum Tokens but I have not figured it out yet. I will eventually learn how to post for sale and change price in the least expensive way and post a new article.
While Polygon is much less expensive, most of the major NFTs are still on Ethereum. If you check the price floors for other projects on other chains, some are pretty high, but nothing competes with Open Sea. Open Sea uses 20% of the Ethereum daily transaction fees right now.