NFT King Index

What is the DecenTrader NFT King Index?

The NFT King Index provides an overview of the NFT market identifying whether there is bullish opportunity or bearish risk at a given moment in time.
It does this by grouping the floor prices of the top 50 NFT’s on Ethereum and applying the NFT King tool to their combined data values.

What is NFT King?

NFT King is a powerful market-first tool that is able to show whether the floor price of an NFT collection has the potential to trend bullish or bearish over time.
It performs a critical risk management role for long-term success by helping NFT investors and traders understand the momentum state of an NFT collection.
NFT King outperforms "buy and hold" strategies by capturing upside opportunities while minimizing the downside risk of holding "worthless jpegs" in downtrends.

How can I access NFT King for individual collections?

You can access NFT King and many other dashboards by subscribing to DecenTrader HERE.

How to use NFT King?

While NFT King compiles a range of complex data, it has been designed to be very easy to use for the end user.
When the latest candle closes green it shows that the Index has bullish potential to increase in value in the near term.
When the latest candle closes red it shows that the index has a bearish risk of dropping in value in the near term.
There are two charts for the NFT King Index. One is priced in ETH, while the other is priced in USD.

How is NFT King calculated?

NFT King is a proprietary tool that ingests market and onchain data. It is specifically designed to manage risk in the NFT market for NFT floor prices. It combines pricing data with volume data from more than 50 collections over time.

What are NFT's anyway?

NFT’s, otherwise known as "Non-fungible tokens", by definition in economics have unique properties. They differ from fiat money which is defined as fungible. For example, a $100 dollar bill is interchangeable with another $100 dollar bill and they both hold the same value. Even if one note may be slightly more worn than the other, they can both be used to buy $100 worth of goods or services. In this sense, NFT’s are more like real estate, collectibles or art, in that each NFT has its own unique properties and value is assigned against those by participants in the market.

Profile picture (pfp) NFT collections tend to be NFT collections that have a particular theme. For example, Cryptopunks are all pixelated characters. Within the collection theme, individual NFT's have particular 'traits' or characteristics that make each NFT within the collection unique.

Such pfp NFT collections typically have 5,000 - 10,000 NFT's within the collection but there are no fixed rules to how many a collection needs to have, and there are examples of collections that have more or less than those numbers.

What is NFT floor price and why is it so important?

Because NFT’s each have unique characteristics that value is assigned to, each NFT in a collection has its own price. However, for every NFT collection there is a base level entry price. The lowest price that someone could buy an NFT for from that collection at a given moment in time.

That floor price is very important as it provides the market with a guide as to the current broad value of a collection, how accessible it would be for market participants to enter the collection, and at what level exit liquidity could be easily obtained for a potential seller.

As the NFT space grows and becomes increasingly financialised with sector innovations such as fractionalized lending against NFT’s, the floor price will become a very important data point over time.

Why are there two timeframes, 1-day and 3-day?

NFT King can be switched between 1-day and 3-day timeframes, where each candle on the chart is representing either 1 day or 3 days of price action. The 1-day timeframe shows a shorter-term view, whereas the 3-day timeframe provides a longer-term trend.