NFT Floor Price Explained: Insights Into the Jewel Metric 

    NFTs have been around for quite some time now. You must be asking yourself, how do I know which NFT to buy in 2023? Especially with the NFT market being down a notch, and the speculation that NFTs are dying. Let me tell you one thing, if you’re still in the NFT flipping game, don’t sleep on the NFT Floor price. Basically it’s the lowest price you can pay to get an NFT in a collection, but that’s not all. You can know almost everything about the NFT from its floor price. Don’t believe me? Then let’s get down to business!

    What Is An NFT Floor Price?

    First things first, let’s have a proper definition of an NFT’s floor price. Consider each NFT collection as its own room with its items spread around the walls on shelves, from floor to ceiling. Which NFT is the easiest to grab for everyone, even a toddler? The one on the floor shelf. Therefore, the NFT floor price is the lowest price you can pay to get an NFT in a certain collection. The name kind of gives it away, as floor literally signifies the lowest part of a room.

    For example, Azuki’s Floor price is currently 5.79 ETH →  the cheapest Azuki NFT you can buy right now is at 5.79 ETH → that’s around $11,099 per ETH value → floor price doesn’t mean cheap.

    Quick Facts About the NFT’s Floor Price:

    • It’s often abbreviated with FP.
    • The FP doesn’t take into account the lowest bid price during an NFT auction.
    • An NFT’s floor price is separate from its mint price. 
      • The mint price is how much it initially costs to buy an NFT when the creators release it on their website. 
    • FP is generally higher than the mint price as people are trying to flip them for a profit. 
    • The floor price is developed on the secondary market → is determined by the market NOT the creator.
    • It’s not uncommon for the floor price to increase significantly post-mint
      • Followed by a sharp decline sometime after → based on the success of the NFT collection.

    BAYC FP room

    How Is the NFT Floor Price Determined?

    It’s fair to say that an NFT’s floor price is a direct indicator of how the market values a specific NFT and its collection. So, the begging question is , how is it determined? There are several factors that play a role:

    • Demand for the NFT
    • NFT’s utility/value
    • Reputation of the brand/creator
    • Collaborations or Influencers backing the NFT project

    But how is the floor price set? Let’s take Pudgy Penguins as an example and demonstrate. This is the current least priced NFT in the collection → Current FP = 4.16 ETH.

    pudgy penguin opensea

    4.08 ETH is the minimum you can pay to get a Pudgy Penguin NFT right now.

    pudgy penguin FP room

    • If someone buys that lowest priced 4.16 ETH NFT for 5 ETH (for some reason) → 5 ETH becomes the new floor price 
    • If someone lists it below 4.16 ETH, for example at 2 ETH → 2 ETH becomes the new floor price

    Therefore We can notice a loop cycle:

    Floor price is determined by → the NFT holder → it depends on the NFT collection’s reputation and value → which influences the actions of the NFT holder

    How To Calculate NFT Floor Price?

    Manually calculating an NFT floor price is very tricky. Basically because it is easily manipulated by outliers. For example, consider a situation in which:

    1. 99% of an NFT collection is trading for an FP of 12 ETH
    2. Few people out of malicious intent or just ignorance listed some of these NFTs at 3 ETH → the NFT floor price immediately drops to 3 ETH
    3. This 3 ETH FP, while technically true , doesn’t accurately represent the general floor price for the NFT collection. 

    Don’t bother yourself with how the statistics work for calculating an NFT floor price. NFT data analytics projects filter out outliers and wash trading. The most important aspect of doing this is to accurately identify and separate genuine market activity from illegitimate transactions. You can always use trustworthy websites and tools, such as:

    Understand Floor Price Manipulation

    Technically speaking, you can say an NFT floor price is calculated by the holders.

    Whoever lists their NFT for the lowest price →  sets the floor → it is fairly easy for one person to manipulate the floor price of an entire NFT collection.

    For example, when whale Franklin decided to dump his BAYC NFTs, after being scammed of 2,000 ETH, the BAYC FP witnessed a dramatic hit to the gutt! 

    Manipulating the NFT market by manipulating the NFT floor price can involve various tactics aimed at artificially inflating or deflating the perceived value of an NFT. It’s important to note that such practices are unethical and potentially illegal in some jurisdictions. Here are some ways people may attempt to manipulate the NFT market through the floor price:

    Tactics of Floor Price Manipulation

    • Fake Bids: Some individuals may create fake accounts or use multiple accounts to place bogus bids on an NFT, creating a false impression of high demand and driving the floor price up.
    • Wash Trading: Wash trading involves trading an NFT back and forth between accounts controlled by the same person or entity. where an individual trades their own NFTs. This activity can give the illusion of increased trading activity and higher prices.
    • Collusion: Colluding parties may work together to agree on artificially high floor prices or to sell an NFT at a lower price to create the appearance of a price decline.
    • False Information: Spreading false information or rumors about an NFT or its creator can influence market sentiment and lead to fluctuations in the floor price.
    • Pump and Dump Schemes: In a pump and dump scheme, manipulators artificially inflate the floor price by hyping the NFT to attract buyers. Once the price reaches a desired level, they sell their holdings, causing the price to plummet.
    • Insider Trading: Obtaining non-public information about an upcoming NFT release or market-moving event and using it for personal gain can be considered insider trading and is illegal in many jurisdictions.
    • Price Spoofing: Price spoofing involves placing and quickly canceling large buy or sell orders to deceive other traders and create the illusion of market activity or liquidity.
    • Floor Sweeping:  
      • A floor sweep is when a collector buys all the NFTs at the floor price.
      • The aim of a sweep is to increase the floor and entice others to buy.
      • This could be a sign that a buyer has faith in a particular NFT collection and is taking advantage of the low price before it increases.
      • Oftentimes a floor sweep is done by an NFT whale.

    How Does the FP Increase & Decrease?

    There are several reasons an NFT’s floor price might decrease:

    • The NFT is a scam (rug pull)
    • The brand made a decision that collectors don’t agree with
    • The token no longer has a viable utility
    • There are no new developments or the project has gone static

    Reasons an NFT’s floor price might increase:

    • The brand has announced a new development or partnership
    • Additional utility has been added to the NFT
    • The asset proved to be a valuable investment over time
    • The brand has done a good job marketing and driving awareness to the collection


    An increased floor price isn’t always a good sign. If you notice an NFT’s price pumping, don’t buy into it immediately.

    Generally, when the floor price dips is when you‘d would want to buy into a project. Assuming the price dip isn’t the result of something negative that occurred.

    You can always learn from case studies. Check out these articles where we discuss the consequences that lead to the fall and rise of major NFT collections’ floor prices:

    How to Assess an NFT based on its floor price

    Assessing an NFT based on its floor price involves understanding the context and dynamics of the specific NFT market. Here are some steps to help you evaluate an NFT using its floor price as a starting point. Choose Carefully which room you want to invest in.

    valhalla FP room

    1. Research the NFT Market:
      Begin by researching the specific NFT marketplace where the NFT is listed. Look for similar NFTs in the same category or collection to understand the average floor prices and recent sales data. 
    2. Creator and Reputation:
      Assess the reputation of the NFT’s creator or artist. NFTs associated with well-known and respected creators tend to command higher prices due to the artist’s influence and established following.
    3. Historical Sales Data:
      Look at the NFT’s historical sales data to see how the price has evolved over time. Analyze any trends or patterns that may have emerged in previous transactions.
    4. Demand and Market Sentiment:
      Pay attention to the current demand and market sentiment for the NFT. High demand and positive sentiment can drive up prices, while low demand or negative sentiment may lead to lower prices.
    5. Value Proposition:
      Evaluate the NFT’s value proposition. Determine what unique features or qualities make it stand out from other NFTs. Consider factors like the quality of the artwork, the story behind the NFT, and any utility or functionality it may offer.
    6. Utility and Use Cases:
      Some NFTs may have utility beyond being a digital collectible. Assess whether the NFT offers any additional benefits or use cases that contribute to its value.
    7. Long-Term Potential:
      Consider the long-term potential of the NFT. Is it part of a growing or established collection, or is it a one-time creation? Assess how its value might evolve over time based on its scarcity, demand, and relevance in the market.

    Why is NFT Floor Price the Jewel Metric?

    The floor price is more than just an statistical metric. It’s a direct indication of holder’s sentiment and activity. It tells the story of an NFT. By looking at the Floor price chart over a long period alone you can know how the community and holders feel about the NFT collection. Take a look at these FP charts:



    Looking at those charts you can tell at a glance:

    • BAYC → had it going so well until mid 2023 when things crashed down
    • Doodles → messed up real bad , will keep sinking 
    • Azuki → been through turbulence and tried to get better but are sinking again
    • Pudgy Penguins → rose from the ashes like a phoenix and continues to rise

    What other things can you infer from the above charts about the mentioned collections? While not to be viewed alone, the floor price on its own can give magnificent insight. Now aren’t you curious what the other metrics to evaluate and NFT are? Check them out here!


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