Any seasoned NFT traders will tell you that an essential step in evaluating a potential flip is to look at recent sales history. Picture this:
The answer to this question is complex, but let’s focus on just one key detail for now: the floor may be different now than at all these past times of sale.
To make these data meaningful, we are standardizing prices with a “floor deviation metric”. Instead of comparing the prices of current listings directly to past sale prices, let’s compare their floor deviation:
In this case, we can instantly see that there is no market consensus for an above-floor price for this trait through its historical sales floor deviations. This means the current listings are probably overpriced. Even if you buy a seemingly good deal that’s just 15% above the floor and attempt to resell it for 35% above the floor, a whole 6% floor deviation lower than the next lowest listing (41%), it probably still will not sell.
Alternatively, here is an example of a trait with a much more obvious above-floor market value:
Suppose you see one of these for 5% above the floor, then well, perhaps it’s your lucky day. 🙂
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