NFT Floor Price - How Much is Your NFT Worth?
As any investor will know, sometimes what you paid for something may not be what it’s worth now. Could it see a surge in value in the future? Maybe. Is there a possibility that the value could plummet? Possibly. This is the conundrum of investments, and it rings true for NFT investors as well. How do you figure out the NFT floor price and see how much it’s worth?
What is NFT Floor Price
Let’s take a look at the NFT floor price first. The floor price is usually determined by the seller/creator of the project, and it is the lowest pricing of an NFT. It’s the minimum amount an investor needs to part with to own a piece of the collection.
NFT floor prices can vary depending on the type of project, which blockchain it is on, the cause behind it, and much more.
How to Judge the Price and Value of an NFT
You can simply use data metrics depicted in the form of charts and trackers to figure out the value of an NFT (more on that later), or you can pair the data with your own research.
There are many factors that contribute to the value of an NFT, such as the popularity, the demand, and of course, the rarity.
For example, if there is a collection with 10,000 of the same NFT, there is no distinction between one from another, which equals a very common collection. Let’s take a very popular and one of the most valuable collections out there as an example – SolPunks.
SolPunks on the Solana blockchain has NFTs within the collection worth millions, and these are the rare ones. There are 10,000 SolPunks, and they are further categorized into different types – female, male, alien, ape and zombie. The male punks are the most common and the aliens are the rarest (but most expensive).
If you manage to purchase one of the alien punks, then it is almost guaranteed to be worth more than any male punk. The rarity is further determined by physical attributes and accessories. The key takeaway is you can assume that the rarer the NFT is, the more valuable it will be.
Aside from the rarity, other elements that contribute to the value are the utility of the token, and to some extent, how well-accepted and coveted it is.
Many NFT projects have real-world applications. For example, you can own an NFT such as Bored Ape Yacht Club (BAYC) apes and gain exclusive access to events. Other NFT collections could be tied to charities and non-profit organizations where much of the proceeds go to fund a worthy cause.
If there is utility or purpose behind your NFTs, then it will most likely be worth more, and people would be willing to shell out for something good.
Find out more info of Upcoming NFT projects with utilities, purpose, and more on sites, like NFT Drops.
NFT Price Charts and Trackers
NFT price charts and trackers on sites are constantly updated and provide valuable insight into what non-fungible tokens are worth. Aside from the trading value and floor price, you can also see how much certain collections have grown or dropped in cost, and even get information about the rarity of the collection you’re looking at.
If you’re a creator and not a buyer, you can also list your project on these sites, check out the rankings, and use the resources to understand if you’re making a good investment.
• What is floor price for NFT?
The floor price for an NFT is the lowest price you can pay for an NFT to own it. The floor price is usually set by the creator/seller and is also usually priced in the native cryptocurrency of the blockchain on which it is built.
• How is NFT price calculated?
The NFT price is calculated by considering the utility, rarity, and purpose among other things. The value will vary depending on the type of NFT as well. NFT collectors can refer to helpful resources such as NFT stats sites for valuation.
The floor price of an NFT is the lowest cost a collector has to pay to own one. Will you necessarily get one that will increase in price in the future? No, but you will have a piece of the project. In order to understand the potential an NFT has, you would need to consider the rarity, utility, purpose, popularity and acceptance behind the project.