Main conclusions
- When buying an NFT, you can rely on a few key characteristics to help determine its potential value. The level of rarity is one of the key qualities that many collectors are guided by.
- As the name suggests, the rarity of an NFT indicates how scarce that piece is compared to the rest of the collection.
Since non-fungible tokens (NFTs) became widely available, the total amount of transactions with them has amounted to billions of US dollars. This figure is expected to grow in the coming years.
What is NFT rarity
Some NFT collections are more valuable than others; even within the same collection, not all tokens are the same. The rarity of an NFT is determined, among other things, by the unique combination of characteristics of a digital asset within the collection it belongs to. Some NFTs are harder to obtain, directly affecting their market value.
According to the economic concept of scarcity, NFTs with rare characteristics usually sell for a higher price and are more in demand. Higher rarity collectible tokens may also provide additional benefits such as exclusive club memberships or access to limited edition merchandise.
Consider the Bored Ape Yacht Club (BAYC) collection as an example. It includes 10,000 monkey-themed NFTs, with each token visually unique. Avatars have different rarity levels depending on what the monkey is wearing, what he is doing, and what is shown in the background.
Each avatar has seven attributes: background, clothing, earrings, eyes, fur, hat, and mouth. Each of them can be presented in different images and styles.
Because each skin appears only a few times in the collection, some tokens are statistically rarer, like shiny Pokémon in the Pokémon universe. An NFT BAYC with a combination of rare attributes will likely cost more than options with more common stats.
How to check the rarity of NFTs
To get more detailed information about the rarity level of an NFT, you can use special programs or platforms that calculate this indicator and rank the NFT based on it. For evaluation, these tools can access blockchain explorers and other data sources to provide users with a better understanding of a given asset. They also consider factors such as popularity, trading volume, and ownership history of each NFT.
How Rarity Affects NFT Value
As with physical art, the price of an NFT is determined by many factors, including top nft twitter popularity. Rarity is an important factor in the market value of NFTs. Still, features such as use cases, aesthetic qualities, exclusive access, and the reputation of the founding team or project creator can also influence demand.
In addition, the price may vary depending on which properties are valued in a particular community. For example, in some cases, an NFT without rare attributes that were first in a popular collection may be more in demand than a statistically more infrequent NFT.
Comments