NFT Floor Price is not what you think and you may not be fully aware of what an NFT floor price is. Understanding the floor correctly is very important because it will reduce the chance of losing money and if you properly understand it then it will help you to spot a great opportunity and maximize your profit.
The NFT marketplace is very volatile and things change very fast, the people who find and grab the opportunity at the right time are the winners. Thankfully it is not very complicated, when you are in NFT trade business then you just always have to keep an eye on what’s going on in the marketplace and I have curated the Top 3 tools to track NFT Floor Prices which are going to augment your ability to spot the profitable opportunity.
What is the NFT floor price and how does it work?
NFT Floor price is simply the lowest price of an NFT inside an NFT Collection or a NFT Project.
When an NFT collection or in other words NFT Project is launched, let’s say the NFT artist has decided to sell a few NFTs at 0.01 ETH and the rest of the NFTs for a higher price. At this point the owner of all the NFTs is one person or company depending upon who is launching the NFT. For a few days the buying and selling frenzy goes on and at that time there could be many or perhaps hundreds of owners of different NFTs for a particular collection.
At this point the floor price is not in the hands of the collection owner or even a single person. If someone decides to sell an NFT at a lower price than all the other NFT in the collection then that price becomes the floor price of the NFT. So when trade volume is very high then the Floor Price fluctuates a lot (within minutes or even seconds). The tools for tracking NFT helps here immensely as is it very hard to track them manually.
In economics, the term floor price refers to the lowest price a seller can be asked to sell a product or service for. In the NFT marketplaces, it’s heavily used to quantify the value of a project so that they can better evaluate it. But the Floor Price cannot be confused with the actual value of the project.
Why is it important to track NFT Floor Price ?
Floor price is not exactly the value of an NFT or a collection but is an important indicator to find out the best valued stuff. Let’s say the floor price of a collection is 0.01 ETH in opensea.io and when you click on the floor price you will be able to see all the NFTs in the collection sorted by price low to high. At this point you have to look for an outlier NFT which you can purchase for profit. Here the tools come into picture which will help you spot the outlier in the collection.
Similarly when you are planning to sell your NFT, let’s say you want to sell it for 1 ETH and floor price of the NFT collection is 0.1 ETH, so then you have to look at the items which are being sold at the floor price.
If your item is more rare and valuable than the item at floor price then you can check the price of the item that are at your rarity level, if the items around your rarity level is higher that 1 ETH then maybe you can sell your NFT and price higher than 1 ETH. If items around your rarity have a lesser price than 1 ETH then perhaps it’s not a good time to sell your NFT and look for the better opportunity to sell your NFT.
What does sweep the floor mean NFT?
The term sweep the floor is used when someone acquires the entire or most of the NFT in bull within a collection. Generally people use sweep bot to keep an eye on the NFT and sweep it once they are available. Once the NFTs are acquired the buyer sells the NFTs at a floor price for profit.
Top 3 Tools to track NFT Floor Price
There are a variety of tools out there, all of them do their job in some way. Here are my Top 3 tools to track NFT Floor Price which I have personally curated and use in my everyday NFT trading. They are the best tools to track NFT Floor prices as well as some other analytics related to NFT, does their job well and free to use.
nftpricefloor.com is an absolutely free tool which provides very good insights including floor price and price cap for NFTs. It has a very elegant and clean interface. The data is updated every 5 minutes. This is one of the best tool to track NFT Floor Price as it is completely free and the data is you see is updated every 5 mins. If you see other tools then this frequency of data update doesn’t come for free.
It lists all the NFT from opensea.io and gathers data from looksrare.org as well.
- Categoric selection of NFT e.g. Avatar, Metaverse, Art etc.
- View the prices (floor price, price cap) in ETH and USD
- Direct link to the source site
- Very good trends graph and historical data
Icy Tools, founded in 2021, is a leading data provider for the blockchain industry that facilitates trustworthy data for NFT researchers by indexing and analyzing blockchain data. Icy Tools thinks unlocking accessibility and usability to blockchain data is the key to enabling the next wave of web3 users.
Icy.tools is a very handy tool to analyze NFT and make informed decisions. It provides historical data of 30 day to 1 hour for free. If you want to catch up the frenzy then you can subscribe for premium to view analytical data of upto 1 minute which is just amazing.
If you are in a serious NFT trader and you have the budget then this is my recommended top tool to track NFT Floor Price.
- Trending collection by sales – Very important from buyers and sellers perspective. It gives insights upto 1 min for premium users.
- Mobile Login
- Developer resource
- Blog, forum and community
- And many more …
CryptoSlam has the biggest tool to track NFT Floor Price in terms of data sources. It aggregates and analyses millions of NFTs from 15+ Blockchains and shows very handy trends for upto 24 hours of time period. It has got the all time analytics as well, if you want to go for a long term investment then this is our winner in the list of top tools to track NFT Floor Price.
- 15+ blockchains means you will see NFT from not only Etherium but also from other blockchains like Solana, Avalanche and Flow etc.
- Live Mint and Live sales matrix for NFT
- Historical data up 24 hours
- Insights and trends on Floor Price and Active Wallets
Special tip to buy or sell your NFT using these tools (special tip)
If you are looking to invest in NFT then this tip is going to help you finding the NFT that might give you multiple times profit. This trick also applies for the people who want to sell NFT for profit.
The rarity factor is the main driver of NFT prices, which is how NFT prices enhance. Thus, if you’re searching for NFTs or NFT projects, you should be setting up your goal and budget, this is how you will not overburden yourself and risk losing money. Keep CALM and Look for the right opportunity.
There are two major factors while buying an NFT
- The Floor Price
- The current Trade Volume
For example, if you see the floor price of an NFT collection is 1 ETH and there is no sale in the last one hour , that means two things, either the price is too high or there is no seller, in either of the scenarios you should avoid that NFT for the time being. If you see the trade volume is high and the floor price is within your budget, it’s time for goldrush.
I have mentioned earlier that you have to keep an eye for outliers, here is how you can find them. First go to rarity.tools find your NFT Collection (if it is listed here), for example I have chosen Bored Ape Kennel Club. In the items filters select buy now and set the sort by price low to high. Now you will be able to see all NFT which are available to buy sort by price, the good part rarity.tools is it shows rarity rank on each NFT, you might might mind a far more rare NFT than another one at almost same price (see the picture below)
This is the outlier lying around and it’s your opportunity. You can buy this and sell it for profit later.
While selling NFT the same principle can be used but for selling as well you have to decide a goal that, at which price you want to let the NFT go and keep tracking the NFTs and wait for the time. You can check the price of the NFTs around the rarity of your NFT and the Floor Price of the project. If the NFT around your rarity comes closer to your price or the floor price comes close to your expected price you can just sell your NFT at that moment.
Like conventional economics, if demand for something is higher then the price of the good is higher. NFT marketplace is extremely fast paced, one minute you see everyone is trading on a collection, another minute the sales might go completely cold. The NFT analytics tools give you an edge over others if you can utilize it properly.
I have provided the best tools to track NFT Floor Price and once you fully understand the Floor Price and the strategy to utilize it then you must be at the top of the game. As mentioned earlier, you always have to keep in mind that the NFT market is extremely fluid, and this fluidity is your opportunity to bang the buck. If you are a beginner then start with little and once you understand the ecosystem you can try for more.