Key Collection Trading Metrics
Floor Price Trend
A collection's floor price is its lowest price of all NFTs listed for sale. Kyzzen aggregates all listings across most major marketplaces on Solana and displays a collectionâs floor price on its collection page.
The trend in a collectionâs floor price across time can be a useful indicator of sentiment towards the collection:
An increasing trend usually means there is increased interest in the collection (either from new buyers or perhaps existing holders looking to collect more)
A decreasing trend usually suggests less interest from holders to continue holding.
It is important to note that the takeaway can be different if viewed in different timeframes - for example, a collectionâs floor price can be increasing significantly across 7 days and then decrease a bit over the past 24 hours, which could mean some holders are simply taking profits from the higher prices.
Floor prices can also be affected by macro factors, such as a general bullish hype or bearish dive in the overall NFT market. Essentially, there are many factors to consider when examining reasons for floor price action in specific situations.
In addition to the above, traders often perceive collections with higher floor prices more positively than other collections with lower floor prices. However, the reason for the high floor price should be examined before making such an assumption. For example, a collection could have a very small supply where there are simply fewer holders looking to sell, or the holders could more easily coordinate on listing at higher prices across the board. A more qualitative indicator may be the collectionâs market capitalization.
You can use SolanaFloor to check out a collection's floor price trend in detail.
Market Capitalization
An NFT collection's market capitalization refers to the total value of its NFTs based on the present floor price, effectively its supply multiplied by its floor price. Some platforms choose to use average price instead of floor price, although in our view that can be manipulated more easily by big holders listing many at astronomical prices.
A higher market capitalization means the NFT collection has a higher value, and the top collections with the highest market capitalizations are usually considered blue-chip projects.
Market capitalization can be measured both in the blockchain's native currency (e.g. SOL, ETH, etc.) and its USD value.
Volume Traded
âVolume tradedâ refers to the amount of currency (e.g. SOL) exchanged between buyers and sellers for a given collectionin a specified timeframe.
The collectionâs trading volume is usually one of the major indicators that traders use when evaluating which collections to trade, as it can reflect how much awareness the collection has in the space based on the notion that the more well-known a collection is, the more trading activity it will likely have.
Similar to floor price action, it is useful to bear in mind trading volumes across different time frames when evaluating collections. For example, collection A could have twice the all-time trading volume of collection B, but it could have been existing for five times as long as collection B.
Also, relatively higher trading volumes in shorter time frames (e.g. 24H, 7 days) can mean that the collection has a lot of attention on it during this period, but bear in mind the reasons for the attention and their sustainability. Trading volumes tend to be exceptionally high for a collection immediately after their launch.
One thing we always like to see is the endurance of high trading volume throughout longer periods, which represents persistence in the interest in the NFT collection.
To see NFT collection volumes across Solana, simply head over to Kyzzen's "Explore Collection" page, which tracks trading volumes across multiple timeframes and across most major NFT marketplaces on Solana.
While we are here, it is also important to note and understand the concept of Wash-Trading. Specifically, in the scope of NFTs, wash trading occurs when traders simultaneously sell and buy the same NFT to generate artificial and potentially misleading trading activity of a collection in a marketplace using different wallets, giving the impression that there is more hype in a collection than actually exists. Hello Moon has an interesting tool to track wash trading activity in collections that you can check out.
Listing %
The number of listings as a percentage of total supply of NFTs in a collection has a significant impact on floor price action. It is a useful indication of the percentage of owners that plan to hold on to their NFTs, and hence can represent the desirability of the collection's NFTs too.
Typically, a low "Listing %" (usually less than 5% of supply) shows confidence in the project by owners, and hypothetically has a higher potential for prices to increase as each sale has a higher impact on the floor price (because there are less listings).
Significant movements in "Listing %" can be an important indicator to track:
A huge increase could mean new concerns for a project or a potential rug
A huge decrease could mean that there is new good news that holders are agreeable with, or there is an upcoming event, e.g. launch of staking utility, upcoming airdrops, etc.
Holders/Owners %
Holders refer to the owners of NFTs in a collection and represents the size of a NFT collectionâs community.
The higher the ratio of holders to the collectionâs supply (usually reflected as a percentage) typically means a more diverse community, and could also mean that the collection is less susceptible to the actions of whales (usually refers to collectors who own a lot of NFTs in a collection, and sometimes also refers to collectors who have a lot of funds that allow them to make large trades that could significantly impact a collection).
SolanaFloor has advanced dashboards that track a collectionâs owners:
Number of Owners
Number of NFTs per Owner
% Owners per Quantity
Owners Concentration
Top 10 Owners
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