what term refers to the lowest price at which an nft can be purchased in a marketplace?
What term refers to the lowest price at which an NFT can be purchased in a marketplace?
Answer:
The term that refers to the lowest price at which a non-fungible token (NFT) can be purchased in a marketplace is called the “floor price.” The floor price represents the minimum amount a buyer would need to spend to acquire an NFT from a particular collection or series available for sale. It is a key metric that potential buyers and sellers use to gauge the relative value and demand for NFTs within a specific market or collection.
In most NFT marketplaces, the floor price is dynamic and can fluctuate based on various factors, including market trends, demand, scarcity, and the perceived value of the NFTs in question. Monitoring the floor price helps collectors and investors make informed decisions about buying or selling NFTs, as it provides insight into the current market sentiment and pricing strategies of sellers within a given collection.