Updated: Sep 27, 2021
Determining what price to sell an NFT at can be a tricky process. Thankfully there are many online tools you can leverage to help find a good price range for your NFT. In this post I'm going to walk through my method for pricing NFTs using Bored Ape #4667 as an example.
NFT Valuation Tools
These websites can be used for evaluating a variety of different NFT collections. Not every NFT project is on each website but I expect more to get added as time goes on. These websites include insights, dashboards, and other information which will allow you to begin the valuation process.
The term "floor price" refers to the lowest price you can purchase an NFT for on the secondary market.
Floor price can be viewed 2 different ways:
Floor price of an NFT collection
Floor price of an individual trait
Collections as a whole
Floor price of an NFT collection refers to the cheapest price you can buy ANY item from that set. This price can be found by locating the lowest priced NFT for sale from a collection.
Here's 4 easy steps to get a detailed look into what items are at a collection's current floor:
Go to OpenSea
Choose which NFT collection you want to view
Click "Buy Now"
Sort the collection by "Price: Low to High"
After following these steps your screen will look like the screenshot below. This shows us that the current BAYC floor price is 6.9 ETH. Nice.
Using a collection's floor price works well for valuing common NFTs because people don't want to pay a premium unless they're getting something with rare characteristics.
Looking at the floor price of individual traits provides a more detailed look at what the specific attributes of your NFT are worth. This is the recommended way to determine the value of rare NFTs.
Example: The current BAYC floor price is 6.9 ETH. I wouldn't want to sell Ape #4667 at the BAYC floor price because there are likely buyers who would pay a premium for it since it has rare traits.
Rarity Tools is my favorite tool for viewing individual trait floor prices. Below is a screenshot of the website's dashboard for Ape #4667. I sorted 4667's traits by Highest Floor Price to show a ranking of the different floor prices people are willing to pay for each of its traits.
The numbers in white boxes on the right represent how many BAYC apes share these characteristics. For example: out of all 10,000 apes in existence, only 119 share the Bored Bubblegum trait.
Generally speaking - the more scarce a trait is, the higher its floor price will be. Let's use Zombie Eyes as an example. Zombie Eyes might be undervalued at the moment since their floor price (7.111) is pretty close to the collection's floor price even though there are only 308 Zombie Eye apes in existence.
In addition to using Rarity Tools, I also recommend using Evaluate Market for more detailed visuals on specific traits. This website allows you to view floor price history for any trait your NFT has. Below is a graph tracking the entire price history of the "Zombie Eye" trait.
Determining a price range
The most important part of valuing your NFT is determining a good price range for it. When determining price range, my favorite strategy is to cross-reference multiple valuation tools.
I like to get a 2nd price reference on my Apes so I have multiple numbers to reference when deciding on a price range. My other go-to dashboard for BAYC apes is Moment Ranks. Moment Ranks uses a different model for determining an NFT's value than just floor price. They use a formula that takes into account 24h market trends, all traits your NFT has, and more.
Based on Moment Rank's evaluation for Ape #4667 it's worth 13.37 ETH.
From personal experience, I find that Moment Ranks tends to provide a good high-end number you can use when finding a price range.
How much should I sell my NFT for?
Now that we have a few numbers to work with we can calculate how much to sell our NFT for.
Here's my strategy:
Low end: 9.99 ETH (highest trait floor price: Bubblegum)
High end: 13.37 ETH (price with all traits accounted for)
This gives us a price range of 9.99-13.37 ETH which could be considered a fair value for this NFT. Does this mean you should only sell your NFT within this range? No.
It's also important to take these 2 factors into account:
Urgency to sell
If I have a strong emotional connection with an NFT I tend to price it near the higher side of its price range. Since I love the aesthetic of Ape #4667 and have no urgency to sell it, I would price this near the higher side of its price range. Let's call it 13.5 ETH.
Depending on how quickly you want to sell an NFT, you may need to venture further down the floor prices of its individual traits until there is a willing buyer. I don't recommend doing this unless you absolutely need the liquidity.
Next low: 8.75 ETH (2nd highest floor price: Faux Hawk)
*keep going down the list*
Absolute lowest: 6.96 ETH (lowest trait floor price: Trait count 7)
Best practice: Don't leave your items for sale on OpenSea too long. NFT markets are volatile and have the potential for floor price to increase past the price your NFT is listed at. I've seen people get amazing discounts on rare NFTs because their previous owners were caught off guard.
And that's about it! If you have any questions or need help valuing your NFT feel free to hit up @paper_ape on Twitter.