Why NFT Floor Tracker on FLOW Blockchain?

1. Flow (FLOW) is a high-performance blockchain specifically for creating NFTs, massive crypto games, and apps.
2. Floor price is the lowest price for collection items, rather than the average item price, and is updated in real-time.

Why we need to track the Floor Price of a Collection?

Generally speaking, NFT floor prices are an attempt for market participants to glean insight into the fair market value of an NFT project at the collection level. This helps focus an NFT buyer’s decision-making process and analysis by stripping away in-collection factors such as rarity, traits, and more. 

> The easiest way to calculate an NFT floor price is to take the lowest-priced NFT in a collection.

However, due to market fluctuations and emotional decisions of buyers and sellers, it is not fair to limit the Floor Price to the minimum of selling price of an item in a time frame.

Therefore, in this dashboard, we are looking for a suitable criterion to determine the Floor Price so that we can show a more realistic price to buyers and sellers.

Important Note: To get a fair price for a collection, it is better to check the features that make an item from a collection more expensive and calculate the calculated criteria for each group of items separately, which we did not do in this analysis.

All analyses based on 2022 NFT sales data

Dashboard Structure

This analytical dashboard is divided into the following sections:

• An Overview of NFT Sales Activities on FLOW
• Top NFT Collection Sales Price Analysis
• Floor Price of Top NFTs
• Floor Price of One Specific NFT Collection

Work Description

This analytical dashboard was created mainly based on the data of the flow.core.fact_nft_sales table from the FLOW dataset in FlipSideCrypto, and based on the data of this table, which provides us with the details of the trades of each NFT in the FLOW blockchain,

• The top collections in terms of FLOW volume and also the volume of USD are determined,

• Then with the initial analysis of trades of these collections we determine their statistical parameters such as the average and maximum price

• In the last section, we define a criterion for Floor Price and for calculated top collections, we draw it on the time axis.

  
  Also, the scope of analysis to 2022 from the beginning of this year until now.

#1 : An Overview of NFT Sales Activities on FLOW

Image Credit : The Market Periodical

Observations #1 : An Overview of NFT Sales Activities on FLOW

• Due to the different price of the FLOW token at the beginning of the year and in the last months, the top collections in terms of the amount paid in dollars are completely different from the top collections in terms of the FLOW volume paid. In this analysis, the top collections in terms of FLOW volume are used to calculate the floor price.
• The volume and number of NFT trades at the beginning of the year is significantly higher than a few months later.
• The volume of NFT buyers increased sharply in the last week (through October 25), likely due to a special NFT collection.
• No relationship was observed between the price of FLOW and the volume of purchases and sales.
• No direct relationship was observed between the price of FLOW and the volume of NFT trades. But with the decrease in the price of FLOW and the prolongation of this price decrease, the number of transactions at this low price is very high.

#2 : Top NFT Collection Sales Price Analysis

Observations #2 : Top NFT Collection Sales Price Analysis

• Except for PackNFT, where the difference between the maximum value and the minimum value is small, we see a large price difference between the different NFT items of other collections. We seem to see a variety of prices for NFTs in the most of top collections depending on the rarity and characteristics of an NFT item.
• The NFTs in the top collections have little trades on average. This means that for every 3 NFTs, two of them have been sold more than once.(except for PackNFT that the average is 1)
• The difference between the average and median value of sales prices in the Gaia collection is very large and shows the imbalance of prices in this collection.

#3 : Floor Price of Top NFTs

To calculate the Floor Price of a NFT Collection, we can simply use the minimum of NFT daily sales price, but since prices can change a lot on a given day due to the emotions prevailing in the market, it is better to have a definition based on a time frame so that these rapid changes cannot be a decision criterion for ordinary users.

For this purpose, we define the Floor Price as:

> The moving average of the lowest selling price of each NFT collection in the last 7 or 30 days (the user can use both for decision making).

Now, according to this definition, we draw two 7-day and 30-day moving average charts for the minimum price of the top collections.

FLOW NFT Floor Price Tracker Takeaways

It seems that the criterion of the 7-day moving average is a more appropriate criterion for the evaluation of the floor price, since the price change of distant days (more than a week) has no influence on it. The diagram of the last section, drawn only for one collection, can show us the truth of this matter.

About Me

Mojtaba Banaie / mojtaba.banaie@gmail.com

Discord: smbanaie#5528

Twitter : @smbanaie

#4 : Floor Price of One Specific NFT Collection

In this section, in order to have a better view of the Floor Price, you can enter the name of one of the n top collections (whose names are mentioned above) in the parameters section of this dashboard, and click the Apply All Parameters button and the following chart , which simultaneously calculates the floor price of that collection with two measures of 7-day and 30-day moving average, is updated.

Observations #3 : Floor Price of Top NFTs

• The first thing that emerges from the price charts of the floors is that the 7-day and 30-day charts are largely identical and can be used interchangeably.
• The second point is the drastic drop in the price of floors from the AllDays and Gaia collections. Meanwhile, the PackNFT collection shows a good increase.
• The Floor Price of the other top collections is about 1 FLOW.
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