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NFTs are everywhere all of a sudden. So the phrase NFT rarity may sound like an oxymoron. But we assure you that it’s got nothing to do with the scarcity of NFTs in general. They are still very much at large. But before we discuss NFT rarity, let’s take a quick look-see at NFTs.
They’ve taken the digital world by storm and left the real world reeling with questions. Lots of questions. For starters: what are NFTs?
NFTs are irreplaceable digital tokens of ownership for something in the real or virtual world. We go in depth about what they are here.
These little tokens of monetary appreciation (some of their prices keep going up) have kind of revolutionised the art world and how! We meant that as a rhetorical question. But if you really want to know how, we’ll give you the gist of it.
You see, before NFTs appeared on the scene, there was no real marketplace for digital art. During this distant era, digital artists had to risk having their work stolen, and buyers of digital art had no way of proving that they were the owners of an art piece. However, the dawn of NFTs changed all this. Because every NFT artwork is coded with unique data that sets it apart from the rest, digital artists can now sign their work and claim it as their own. Buyers, on the other hand, can prove that they own the real thing.
Now since every NFT is unique, why are some NFTs more unique? What makes them rarer and sell at a higher price?
Well, this is where rarity comes in.
What makes some NFTs in the same series sell at a higher price are the rare traits that they possess.
Every NFT is composed of various traits. These traits could be any descriptive element such as colour, accessories or expressions. Every trait in an NFT series is given a rarity score based on how many times it appears in the series. Every NFT, on the other hand, is given a rarity score based on the sum of all of its traits’ rarity scores. The more rare traits an NFT has, the rarer it is. NFTs in a series are given rarity rankings based on their rarity scores.
Take for example the CryptoPunk series. Sure, they all kind of look alike, but they have certain traits which set them apart. For instance, the highest selling NFTs in this series were either aliens, apes or zombies. This is due to the fact that there are only nine aliens, twenty-four apes and eighty-eight zombies out of 10,000 NFTs.
So, do you have to sit and calculate the rarity score of every single trait and NFT in a collection to determine their rarity rankings? Luckily, you don’t have to. There are several NFT rarity tools that can help you. Rarity checking tools help collectors of NFTs as well as NFT creators to determine the rarity of NFTs in a series.
So how exactly does the rarity of an NFT help someone?
Well, if you are an artist who creates NFTs, figuring out the rarity of your NFTs will help you price them. By using NFT rarity tools, you can assess the values of various NFTs in your collection. You can price rarer NFTs at a higher price and the less rare ones closer to the floor price of your series.
Determining rarity also helps collectors of NFTs.
If you are interested in buying NFTs that will appreciate in value, using a rarity tool may help you zero in on ones with potential.
These NFTs may ensure that you get more than your money’s worth when you resell them.
But it is not just rarity that sets some NFTs apart from the others. NFTs created by well-known artists are more likely to fare better in the NFT marketplace than ones made by more obscure creators.
An NFT’s looks can also influence its ability to lure buyers. Some customers attach more value to NFTs that look good to them without a care about what the market says.
Some NFTs hold value based on their utility. Known as utility NFTs, their value is based on the service, advantages or access that they provide. These NFTs have a set intrinsic value. NFT concert tickets, an NFT pass to a restaurant’s opening or in-game NFTs are examples of utility NFTs.
Though every NFT holds some value (whether NFT haters agree or not), some NFTs are more valuable than others. The truth hurts, and NFT rare-ism is a thing. So, if you want to cash in on NFTs, you might want to keep rarity in mind the next time you create or purchase them.