-
Bitcoin $91,066.1804
1.39% - Ethereum
$2,285.1764
2.42% - XRP
$2.6248
4.62% - Tether USDt
$1.0000
0.00% - BNB
$602.4184
0.05% - Solana
$151.7179
2.44% - USDC
$1.0000
0.00% - Cardano
$0.9557
-4.02% - Dogecoin
$0.2103
2.92% - TRON
$0.2427
-0.41% - COMBO
$0.1974
1.03% - Pi
$1.8491
-7.31% - Chainlink
$17.4017
7.96% - Hedera
$0.2495
-3.33% - Stellar
$0.3080
0.86% - Avalanche
$22.1180
4.78% - UNUS SED LEO
$9.9041
-0.08% - Sui
$2.6717
3.91% - Litecoin
$107.4899
2.37% - Shiba Inu
$0.0...01352
1.63% - Bitcoin Cash
$397.5955
5.57% - Toncoin
$3.0705
0.55% - Polkadot
$4.5816
3.46% - MANTRA
$6.9658
-3.03% - Hyperliquid
$17.1491
-1.96% - Bitget Token
$4.6804
5.26% - Ethena USDe
$0.9992
0.00% - Dai
$1.0000
-0.01% - Uniswap
$7.4847
0.74% - Monero
$230.4960
1.60%
What is Floor price? Understand Floor price in the cryptocurrency world in one article
In the cryptocurrency realm, floor price serves as the support level beyond which an asset's price is unlikely to deteriorate, influenced by token economics, market demand, and technical support.
Oct 22, 2024 at 07:54 am
Understanding Floor Price in the Cryptocurrency World
1. Definition of Floor Price
In the context of cryptocurrencies, floor price refers to the lowest price at which an asset can be purchased. It represents the support level below which the asset's price is unlikely to fall.
2. Factors Influencing Floor Price
Various factors can influence the floor price of a cryptocurrency:
- Token Economics: The supply and demand dynamics, such as token issuance and distribution, can affect the floor price.
- Demand and Hype: Increased demand from investors can drive up the floor price, while decreased demand can lower it.
- Market Conditions: Bearish market conditions often lead to lower floor prices across the board.
- Technical Support: The psychological level where buyers are willing to enter the market can create a technical floor price.
3. Identifying Floor Price
There are two main methods to identify floor price:
- Technical Analysis: Chart analysis techniques, such as support and resistance levels, can indicate potential floor prices.
- On-Chain Metrics: On-chain data, such as trading volume and whale activity, can provide insights into demand and support levels.
4. Importance of Floor Price
Understanding floor price is crucial for investors and traders for several reasons:
- Buying Opportunities: Identifying a coin's floor price can help investors make informed decisions about when to buy and accumulate assets at a discounted price.
- Risk Management: Knowing a cryptocurrency's floor price can limit potential losses in volatile market conditions.
- Market Sentiment: Floor prices can reflect investor sentiment and gauge the overall health of a project.
5. Example
Consider a cryptocurrency with a circulating supply of 10 million tokens. If the current market capitalization is $1 million, the floor price would be $0.10 ($1 million / 10 million tokens).
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- Meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) continued their upward trajectory
- 2025-03-06 19:20:41
- Hong Kong Government Unveils Sophisticated Crypto Scam Involving Fake Social Media Account Impersonating the City's Chief Executive
- 2025-03-06 19:20:41
- World Liberty Financial, the Decentralized Finance (DeFi) Project Co-Founded by US President Donald Trump, Is Buying the Dip Ahead of the First White House Crypto Summit Tomorrow
- 2025-03-06 19:20:41
- Rexas Finance (RXS): The Next Big Breakout Token
- 2025-03-06 19:20:41
- Liv Bank Launches Its Crypto Offering Through the Liv X App Targeting the Growing Crypto Adoption in Dubai
- 2025-03-06 19:20:41
- Mutuum Finance (MUTM) Pre-Sale Rapidly Gains Investor Interest, Raises $2.2M From Over 4,200 Token Holders
- 2025-03-06 19:10:41
Related knowledge
What is the mining process of blockchain digital currency?
Mar 06,2025 at 06:31pm
Key Points:Blockchain mining involves solving complex cryptographic puzzles to verify and add transactions to the blockchain.The process requires specialized hardware (ASICs) for most popular cryptocurrencies due to the computational intensity.Miners are rewarded with newly minted cryptocurrency and transaction fees for their computational work.The diff...
What is the difference between PoW and PoS of blockchain digital currency?
Mar 06,2025 at 06:01pm
Key Points:Proof-of-Work (PoW): Secures the blockchain through computationally intensive mining, rewarding miners for solving complex cryptographic puzzles. High energy consumption is a major drawback.Proof-of-Stake (PoS): Secures the blockchain by allowing validators to participate in consensus based on the amount of cryptocurrency they hold. Generally...
What is Presale?
Mar 06,2025 at 06:07pm
Key Points:Presales offer early access to cryptocurrency projects at a potentially lower price than the initial exchange listing.Participation involves risk, as projects may fail to launch or deliver on promises.Various platforms facilitate presales, each with its own rules and procedures.Due diligence is crucial before investing in a presale to mitigat...
What is Decentraland?
Mar 06,2025 at 02:24pm
Key Points:Decentraland is a decentralized virtual world powered by the Ethereum blockchain.Users can buy, sell, and develop virtual land (NFTs) within Decentraland.Decentraland's governance is community-driven, allowing users to participate in shaping the platform's future.The platform supports various applications, including gaming, social interaction...
What is Enjin?
Mar 06,2025 at 02:48pm
Key Points:Enjin is a blockchain-based platform specifically designed for creating, managing, and integrating NFTs (Non-Fungible Tokens) into games and applications.It utilizes its own cryptocurrency, ENJ, to back the value of in-game assets, ensuring their scarcity and providing a secure trading environment.The Enjin platform offers various tools and s...
What is Tornado Cash?
Mar 06,2025 at 04:30pm
Key Points:Tornado Cash is a cryptocurrency mixer designed to enhance the privacy of transactions on the Ethereum blockchain.It works by combining multiple users' transactions, obscuring the origin and destination of funds.While proponents argue it protects user privacy, critics highlight its potential use in illicit activities like money laundering.Its...
What is the mining process of blockchain digital currency?
Mar 06,2025 at 06:31pm
Key Points:Blockchain mining involves solving complex cryptographic puzzles to verify and add transactions to the blockchain.The process requires specialized hardware (ASICs) for most popular cryptocurrencies due to the computational intensity.Miners are rewarded with newly minted cryptocurrency and transaction fees for their computational work.The diff...
What is the difference between PoW and PoS of blockchain digital currency?
Mar 06,2025 at 06:01pm
Key Points:Proof-of-Work (PoW): Secures the blockchain through computationally intensive mining, rewarding miners for solving complex cryptographic puzzles. High energy consumption is a major drawback.Proof-of-Stake (PoS): Secures the blockchain by allowing validators to participate in consensus based on the amount of cryptocurrency they hold. Generally...
What is Presale?
Mar 06,2025 at 06:07pm
Key Points:Presales offer early access to cryptocurrency projects at a potentially lower price than the initial exchange listing.Participation involves risk, as projects may fail to launch or deliver on promises.Various platforms facilitate presales, each with its own rules and procedures.Due diligence is crucial before investing in a presale to mitigat...
What is Decentraland?
Mar 06,2025 at 02:24pm
Key Points:Decentraland is a decentralized virtual world powered by the Ethereum blockchain.Users can buy, sell, and develop virtual land (NFTs) within Decentraland.Decentraland's governance is community-driven, allowing users to participate in shaping the platform's future.The platform supports various applications, including gaming, social interaction...
What is Enjin?
Mar 06,2025 at 02:48pm
Key Points:Enjin is a blockchain-based platform specifically designed for creating, managing, and integrating NFTs (Non-Fungible Tokens) into games and applications.It utilizes its own cryptocurrency, ENJ, to back the value of in-game assets, ensuring their scarcity and providing a secure trading environment.The Enjin platform offers various tools and s...
What is Tornado Cash?
Mar 06,2025 at 04:30pm
Key Points:Tornado Cash is a cryptocurrency mixer designed to enhance the privacy of transactions on the Ethereum blockchain.It works by combining multiple users' transactions, obscuring the origin and destination of funds.While proponents argue it protects user privacy, critics highlight its potential use in illicit activities like money laundering.Its...
See all articles
