Best Evaluation Metrics for Assessing the Value of an NFT

The explosion of growth and records of success in the NFT space within the last year has set the path for the birth of countless intriguing new NFT projects. The interest to own and flip NFTs by everyone keeps soaring day by day; hence it is vital to have some basic metric knowledge to measure the potential value of an NFT.

Floor Price

The floor price, also known as “entry price”, simply means the price of the least expensive NFT in a collection of NFTs. The floor price is the smallest amount of money one can purchase or pay to join or own an NFT project.

Purchasing an NFT at the floor price is regarded as a strong entry strategy since it provides an accessible entry point for new members of an NFT initiative. The floor price is an excellent statistic for gauging how well-received an NFT project is by the community. As demand grows, the floor price will rise as well. This means that if you purchase the least expensive NFT in a collection hoping, that it will become more popular, you can resell the NFT at a higher floor price.

To help visualize the meaning of floor price, consider the Doodles NFT. According to OpenSea, Doodles NFTs come in a joyful range of colours, traits, and sizes with a collection of 10,000. The floor price of the Doodles NFT is at the time of writing 15.98 ETH. This means that the most affordable Doodle NFT out of the 10k Doodles collection costs 15.48 ETH. 

Market Cap

Another metric aside from the floor price to analyze an NFT is its estimated market cap. A great tool for measuring the estimated market cap of an NFT is

Market cap is computed by multiplying its seven-day average price by its total supply. NFT marketplaces are often illiquid, which means you’d need to find a buyer that is willing to purchase your NFT when you are ready to flip it.

This means that a high estimated market cap suggests that there are more interested parties ready to pay a greater price to purchase an NFT. In a nutshell, NFTs with a high estimated market cap is a good sign. To get the estimated market cap, log on to, scroll down the page and type in your favourite NFT project to have a look at the market cap.

Diamond Hand Value

An excellent tool for checking the diamond hand value of an NFT is Nansen’s analytical tool.

This third metric used to quantify an NFT collection is the percentage of owners who have not sold their initial NFT collection and are ready to hold their assets for a very long time, no matter the volatility or losses. Knowing the diamond hand value gives a pointer to knowing long-term believers in a project.

According to Nansen’s website, diamond hands balance refers to the total balance of NFTs belonging to addresses that have not sold any NFTs from a particular collection.  In short, diamond hands balance refers to the number of holders who plan to hold an NFT with long-term foresight (opposite of paper hands which is the regular case for collections which is evidently used for short-term flipping). 

Unique Holders

The fourth parameter used to determine an NFT’s worth is the number of unique holders. A useful tool for checking the number of unique holders of an NFT is

This metric is used to determine the size and how big the community surrounding a project is. The larger the community, the more the support, which helps sell the project to a larger pool of potential purchasers.

Volume Traded

The fifth metric you can utilize is the NFT collection’s volume traded. You can use OpenSea to check the trading volume of NFT collections.

This metric illustrates the collection’s overall demand. The volume exchanged provides insight into the popularity of an NFT collection; the higher the volume, the better the indication that people must be willing to buy and sell. The volume traded is also an indicator to assess whether an NFT project is in demand at the moment or not, and the higher the volume also shows how liquid the market is. 

To check the volume traded, check out the OpenSea Rankings page.

Rarity Score

The last and the most relevant metric on this list is the rarity score, used to quantify the collection’s potential value. You can use for this. 

NFTs with a higher rarity score are often more valuable than those with a lower rarity score. With a rarity score, NFT collectors can assess and evaluate the value of a single NFT.

Each trait of an individual NFT is assigned a rarity score, and the rarity scores for all of the NFT’s traits are put together to generate an overall rating. The following is an illustration:

Make sure to always do your own research, and check the factors listed above, before buying an NFT!

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*All investment/financial opinions expressed by are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.

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