The lowest price of any NFT in a specific collection; it is updated in real-time.
The Long Explanation
In simple words, the term is used to represent the cheapest NFT in a particular NFT collection. It is the lowest price an NFT enthusiast spends to own an NFT, thereby becoming a member of an NFT project.
Floor price is typically set by the owners of an NFT in a specific project, listing their NFT at a lower price when compared to all the other NFT sellers in the same project.
Let’s say you’re visiting a store to buy a sweatshirt from your favorite brand. Of course, the brand will have multiple options for you to choose from. You could notice that some sweatshirts are priced higher than the rest because of the various expensive traits they come with.
The same applies to NFTs as well. Different NFTs in the same NFT project will be priced differently based on the rarer traits they possess. This means the cheapest NFT in the collection represents the floor price, just like the cheapest sweatshirt from your favorite brand.