What Is Floor Price?
Definition
Floor price is the lowest price at which a token or NFT is available for purchase on the market — it represents the minimum entry cost for buyers.
Floor price has different meanings depending on context:
- The floor price is the current market price on DEXes — determined by the liquidity pool ratio
- When you create a pool with initial liquidity, you set the floor price via the token-to-SOL/ETH ratio
- The floor changes immediately as traders buy and sell
- Floor price is the cheapest listed NFT in a collection — it represents "entry price" for the collection
- A rising floor signals increasing demand; a falling floor signals selling pressure
For token creators, the initial price (set by your liquidity pool ratio) is effectively the floor at launch. After trading begins, the price floats based on supply and demand. More liquidity = more stable floor (less slippage on trades).
- Locked liquidity (LP tokens burned — liquidity can't be removed)
- Fixed supply (mint authority revoked — no inflation)
- Active community and trading volume
- Real utility (governance, access, rewards)
Related Terms
Liquidity Pool
A liquidity pool is a pair of tokens locked in a smart contract that enables decentralized trading on automated market makers (AMMs) like Raydium and Uniswap.
Market Cap (Market Capitalization)
Market cap is the total value of all tokens in circulation, calculated as token price multiplied by circulating supply. It's the primary metric for comparing token sizes.
Tokenomics
Tokenomics is the economic design of a cryptocurrency token — covering supply, distribution, utility, incentive mechanisms, and how these factors affect the token's value over time.
Slippage
Slippage is the difference between the expected price of a trade and the actual execution price, caused by insufficient liquidity or price movement between submission and execution.