The popularity of NFTs (Non-Fungible Tokens) has risen over recent years, with many people desiring to collect or invest in these crypto tokens. However, all NFTs are not created equal, some have more value than others. The major factor that determines the value of an NFT is NFT rarity. That is why we decided to do an article about NFT rarity. In this article, you will learn what NFT rarity is, how it works, as well as how to determine the rarity of an NFT. Such information will help you to make a more informed decision when buying and selling NFTs. But first, let’s discuss what are NFTs.
What are NFTs?
NFTs are a type of cryptocurrency token just like Bitcoin and Ethereum. However, what makes NFTs unique is their “non-fungibility,” which means that they cannot be mutually exchanged. This is also the main difference between NFTs and cryptocurrency. While cryptocurrencies can be exchanged for an equivalent value, this is not possible with NFTs. Each NFT is unique and has its own set of properties, which make them distinct from each other.
The NFT market has become very popular, with some tokens having more NFT value than others. Next, we will discuss the rarity NFT score.
What is NFT Rarity?
One of the factors that determine the value of an NFT is rarity. NFT rarity measures how common an NFT is within a collection. Rarer NFTs have a higher value than the common ones.
Simply put, NFT rarity is the uniqueness or scarcity of an NFT. Each NFT comes with a unique identifier that makes it unique from other NFTs. However, when it comes to a collection of NFTs, there are always variations in the scarcity of rarity of different tokens.
The variations come in different ways such as the number of tokens within a collection, the artwork or design of the token, or the attributes and properties assigned to the token. NFT rarity determines the value of an NFT token. The rarity NFT score also determines the willingness of investors or collectors to buy an NFT. They will be more willing to buy rarity NFT or more sought-after NFTs. NFT creators and collectors also use NFT rarity to create interest and excitement in a particular token or collection.
How Rarity NFT Works
To understand the way NFT rarity works, you should first know that when an NFT is minted, it comes with unique properties called traits that cannot be changed. NFTs can share a trait, but no two NFTs are identical within a randomized collection.
To learn more about NFT minting, read our blog by clicking here.
NFTs with a high rarity NFT score are more likely to fetch a higher price than NFTs with more common features. For example, the Bored Ape Yacht Club (BAYC), an NFT collection created by Yuga Labs, comprises only 10,000 NFTs. The BAYC NFTs are in the form of cartoon apes that are varied using their appearance. That is how the collection managed to create NFT rarity within the collection. BAYC NFTs with rarity NFT features such as golden fur have a higher price than those with common traits. BAYC is the most famous NFT collection today, with its NFTs fetching some of the highest prices in the NFT market. At the time of writing, NFT Price Floor data showed that the collection was ranked #1 in terms of NFT price floor. It had a floor price of 72.89 ETH. CryptoPunks came a distant second with a floor price of 63.50 ETH.
The Importance of NFT Rarity
NFT rarity is a very important factor because it determines the value and demand for a particular NFT. Since each trait is limited to a specific number of NFTs within a collection, some of them are statistically harder to come by. NFTs with a combination of rare traits are most likely to fetch a higher price than those featuring common traits.
How to Check Rarity NFT Score
Knowing how to spot rarity NFT can give an NFT trader an advantage over other NFT traders when it comes to collecting NFTs. It can save the NFT trader time and money, and give him an edge over other traders in the marketplace with information on the likely value trajectory of a particular NFT over time.
There are different ways of checking NFT rarity. One of the ways is to use NFT rarity sites such as Rarity tools. Such sites will help you to find the rarity NFT score and know whether the NFT is in demand or not.
Another way to find rarity NFT is by the use of a Rarity Ranks Extension like the Rarity Ranks extension. Such extensions are installed on web browsers such as Firefox and Google Chrome and they can help you to determine the NFT rarity score. However, you must be keen when choosing the extension to install because it may access and steal your confidential data.
You can also determine NFT rarity using OpenSea, an NFT marketplace that allows users to create, buy, and sell NFTs. After clicking on an NFT to view an entire collection, users can get a sense of NFT rarity. Most NFT projects comprise a collection of 10,000 NFTs, but this differs from one NFT project to another.
Crypto.com is another platform for checking the rarity NFT. The tool has a rarity NFT score calculation algorithm that checks the NFT rarity of a collectible. To determine an NFT’s overall rarity ranking within its collection, the algorithm first calculates the rarity score for each property or trait the NFT holds. The fewer other NFTs within the collection hold that trait, the higher the rarity NFT score for that NFT.
After calculating the rarity NFT score of each property, these are summed up to get the overall rarity NFT score for the NFT.
The NFT then assigns rarity ranks to each NFT in the collection in descending order based on their overall rarity scores. This means that NFTs with higher rarity scores will appear higher in the ranking.
Kraken NFT is also another way of determining the rarity NFT score. The tool uses a formula that weighs the number of NFTs within a collection that has a particular trait against the total number of NFTs contained in the collection. It then gets the sum of the rarity values for all traits of an NFT to get the overall rarity score. The NFTs within the collection are then ranked based on the overall rarity score.
How is the NFT Rarity Score Calculated?
There are different ways of calculating the rarity NFT score, and each gives a different result.
Some methodologies calculate the NFT rarity score by determining the average rarity of every trait expressed within an NFT. Others consider the rarest trait, ignoring the scarcity of the other traits. Some get the rarity values of the different traits shown within the NFT and multiply them with each other to determine the rarity NFT.
These methods for calculating the rarity NFT score offer different algorithms and results. Some of the methods overweight the rarity of all traits within the collection, meaning they don’t properly account for the extreme rarity of some outlier traits. Others focus on the NFT’s rarest traits and assign less importance to the less rare traits. Such methods give an incomplete picture of NFT rarity.
Which is the Best NFT Rarity Checker?
Determining NFT rarity is an important concept for those in the NFT market. It can help you to speculate about the value and potential appreciation of the NFT. There are many rarity NFT checkers today, and it’s difficult to identify the best one as they use different algorithms and data sources. Thus, the best NFT rarity checker tool depends on an individual’s preferences and needs.
Rarity.tools and Rarity Sniper are some of the popular tools for checking rarity NFT. Rarity.tools is popularly used to check the rarity NFT score for NFT collections. Rarity Sniper is used to check the rarity NFT score for each NFT. It also returns data about the trading history and price trends for the NFT.
It is worth noting that since different NFT rarity checker tools use different approaches and algorithms in calculating the NFT rarity, it means that different tools may give a different rarity NFT score for the same NFT. Thus, you should not find it strange to see rankings differ from one tool to another.
Buy and Sell NFTs for a Profit
You can grow your crypto earnings by buying cheap NFTs and selling them for a profit. NFTCrypto.io has made this even easier for you via their NFT trading signal system. They find profitable flips in the NFT market and share the signal with you in real-time. Join NFT Signals now and become a successful NFT trader. The platform users have so far earned a total group profit of over $1 Billion.