Chainlink Announces Launch of NFT Floor Price Feed Service

Chainlink Announces Launch of NFT Floor Price Feed Service

Chainlink, an oracle service provider, announced the launch of NFT floor price feed services on Ethereum owing to a collaboration with Coinbase Cloud. The new price feeds will unlock many building opportunities connected to NFT. 

Chainlink recently announced the official launch of its NFT floor price feed services on Ethereum. In a recent tweet, Chainlink said:

“Chainlink NFT Floor Pricing Feeds are now live on Ethereum. They’re secure, reliable, and accurate—just like Chainlink Price Feeds.”

The price feeds were already live on November 16th on Ethereum’s mainnet. The data feed will help provide info about the lowest price of an NFT in a collection, the same way the Chainlink data feeds operate.

Reports show that the price feeds data is available only for 10 NFT blue-chip collections. The collections include Azuki, BAYC, CloneX, Cool Cats, CryptoadzNFT, Cryptopunks NFTs, Vee Friends, Doodles, Mutant Apes, and World of women NFT. 

Chainlink’s documents explained that the ten chosen collections have massive liquidity and offer reliable pricing data across major NFT marketplaces

While announcing the new NFT price floor service, Chainlink mentioned that Coinbase Cloud’s aggregation algorithm makes it possible to offer the feeds. According to their document, Chainlink leverages the aggregation algorithm to eliminate extreme price outliers, making the feeds manipulation-resistant. When making their announcement, the Coinbase VP of Data, Michael Li, noted:

“We are excited about this partnership between Coinbase and Chainlink. We’re bridging the gap between transparency and security in the NFT space by bringing reliable and timely on-chain NFT Floor Pricing Feeds for the top NFT collections to the Web3 world.”   

In the same blog post, Coinbase mentioned that they decided to work with Chainlink since the platform’s services are time-proven, widely adopted, and highly secure.

Price Feeds will Help Investors Build

Following the launch of the services, investors, mainly developers in the NFT landscape, will use the data feeds to deploy a wide range of DeFi-like solutions that demand high-quality NFT data. 

For instance, investors can use the ten collections to take loans, make index funds, and participate in other activities while remaining safe from market volatility. Other opportunities include creating prediction markets, CeFi (centralized finance) products, gaming guilds, dynamic NFTs, lending and borrowing, and on-chain derivatives.

As the roll-out continues, people can take loans with their NFTs, make an index fund with Yuga Labs, and many more. Hence, the price feed unlocks innovation in the NFT space. The ten NFT collections are likely just the first phase of Chainlink’s integration.

The Chainlink announcement on Twitter was received quite well by the community. Many commended the network for doing some good work, noting that Chainlink has unlocked building on NFTs. One Twitter user Mike Ferrer, actually responded by saying;

“The building continues NFT Floor Pricing Feeds will be essential for the next phase of #NFT growth and adoption in the months and years to come.”

While a large part of the community praised Chainlink, others claimed that Chainlink did not select collections with high liquidity. One user mentioned that Otherside should be on the list since it had the best liquidity in recent months.

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