Unlike fungible tokens such as ETH or BTC, NFTs are non-fungible cryptographic tokens that represent goods with unique properties, so each one will have a different price.

However, at any given moment, the supply side of the NFT markets representing sets and subsets of digital collectibles, generative art drops and other forms of crypto art tends to converge -from a price discovery point of view- on a common ground -the lowest ask price- that we call "price floor".

At NFT Price Floor we believe that the price floor concept will become increasingly relevant to the non-fungible token space, as revealed by interesting initiatives that bridge the world of digital collectibles/crypto art with DeFi. Predictably, AMM liquidity provision services via ERC20 index tokens, and lending services that allow the use of NFTs as collateral will also give a boost to the price floor concept on the sector.

Obviously, the usefulness of the price floor concept is closely linked to the level of granularity offered with regards to the data of each collectible set or crypto art drop. We are very aware that for certain NFTs, with abundant series and subsets, presenting a general price floor is not as useful as for those that are more homogeneous. For that reason, we will continually work to gradually increase the granularity of our data.


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