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Floor Price Dynamics

Definition

Floor Price Dynamics describes the forces and factors that influence the lowest price at which a non-fungible token (NFT) or a collection of NFTs is available for sale on secondary markets. These dynamics are shaped by market sentiment, project utility, community engagement, overall market liquidity, and the scarcity of the digital assets. Understanding these movements helps assess the perceived value and stability of an NFT collection. A strong floor price often indicates robust demand and confidence in the asset.