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We have seen the NFT industry grow rapidly this year. Non-playable tokens, or NFTs, have gained so much popularity that Collins Dictionary has even named them as the Word of the Year for 2021! Investors frequently ask how to determine the rarity of NFTs as the tsunami of NFTs sweeps the digital world. When analyzing NFTs, rarity is a crucial consideration—possibly the most crucial one.
However, what exactly is rarity and why is it so crucial?
What is the rarity of an NFT?
With so many NFTs entering the market, what decides their worth? Why do some NFTs, sometimes even from the same collection, sell for millions of dollars while others do not? Rarely is the solution to both queries given.
Simply simply, an NFT’s rarity dictates how valuable it is and, thus, how scarce it is. Collector demand drives up the price of rare NFTs, which are in high demand. For this reason, people are curious about the rarity of the NFTs in their collections or whether the item they intend to purchase is rare.
How is the rarity of NFT calculated?
So what precisely makes NFTs uncommon? NFT 1/1 is one of them, and it was created by Fewocious, a well-known cryptocurrency artist, as well as by famous people like Paris Hilton and Snoop Dogg. Of course, it is simple to recognize them. The rarity of each feature within the NFT, however, impacts the NFT’s total rarity when it comes to NFT collections containing hundreds of NFTs.
Consider the NFT gathering success CryptoPunks as an illustration. 10,000 NFTs total, split into five distinct “punk types” make up the collection. The rarest type is “Alien,” of which there are just nine; the least rare type, “Male,” has a total of 6039 NFTs. Each type also has unique characteristics or qualities that vary in rarity.
This prompts a number of queries: What combination of unusual characteristics qualifies as an NFT? How can I calculate an NFT’s total rarity? A given NFT’s rarity in comparison to others and a lot more.
The overall rarity of a single NFT can be determined using a variety of techniques. This can be done statistically, by determining the rarity of the rarest feature, or by computing the average rarity of the traits. But instead of focusing on a specific trait, each of these approaches emphasizes common NFT features. Thus, a technique known as “rarity scoring” was developed by Rarity Tools.
The total rarity score for an NFT is calculated by adding the rarity scores of each of its features, according to Rarity Tools.
The following equation can be used to determine a feature value’s Rarity Score:
1/([Number of items having this trait value]/[Total number of items in the collection]) is the rarity score for the trait value.
Here, the indicator considers both a specific NFT characteristic and the feature’s general rarity. As a result, many websites now use the Rarity Score as the de facto method for determining how rare NFTs are.
How to determine whether NFTs are rare
No one wants to perform all these computations manually to determine the rarity of each NFT they require, of course. Don’t worry; with a few clicks, you can find your rarity score using a number of investment instruments. Let’s examine a few of them!
Read Also: WHAT THE HELL IS AN NFT?
A well-known NFT rarity tool is Rarity Sniper. It has 774 collections of Solana, Ethereum, etc. You can examine the rarity rank, rating, and all the details on its highly nice and user-friendly design.
Additionally, Rarity Sniper has a 400,000-member Discord channel. It is noteworthy that you may learn more about NFT rarity here! Use the bot command listed below in the rarity-check section to accomplish this:
Id/rank [id] of rarity for [collection]
Here, the term “collection” refers to the collection’s name. You may check the rarity of a given rank by using “rank,” or you can check the rarity of a specific NFT by using “id.” The asset’s identification (number) comes next. For instance, enter the following command to determine the rarity of Punk X NFT #244:
As you can see in the illustration below, Rarity Sniper Bot will react right away! Of course, this is a simple approach to locate NFT rarity. You can only locate the rarity of collections supported by Rarity Sniper, though.
The most used NFT rarity tool is rare Tools. It instantly ranks NFTs according to how uncommon their features are. NFTs can be filtered here based on average price, overall sales, owners, and top collections. Additionally, you can discover details on prospective initiatives as well as prominent collections already in existence, such BAYC and CryptoPunks. Finding a rare is also a breeze because to the website’s straightforward and beautiful UI!
Simply visit the collection’s page to see the rarities it contains. Each NFT is represented with a card that lists all of its characteristics as well as its rarity rating. By pasting your NFT ID into the “project section,” you can also check the NFT’s Rarity Score. When you click “Lookup,” all of your NFT’s attributes and Rarity Score will be displayed.
For instance, the top-ranked CryptoPunk #8348 on the website has a Rarity Score of 10342.68. Contrarily, CryptoPunk #7804 at 2329.18 has a rarity rank of #2. The portal charges 2 ETH for NFT projects to be posted, even if the tool is free to use.
HowRare.is is your best bet if you merely want to learn how rare Solana NFT is. According to price, quantity of items and holders, whether NFTs are for sale, and other factors, the website offers 255 Solana NFT collections. Similar to Rarity Tools, you can sort NFTs by rarity within each collection. You can discover the rarity rank, rarity score, and comprehensive attribute information for each NFT underneath. You can find details about recent sales under the section on sales history.
Additionally, you can use the asset ID to determine the rarity of the NFT you now own. You may also get more information on the upcoming Solana collections here if you’re seeking for it. However, HowRare.is does not review them, so make sure to do your own due diligence before making a purchase.
Try Traitsniper if you want comprehensive information on recent NFT efforts. This tool’s whole attention is on the ongoing and upcoming initiatives. The Traitsniper bot spends less than 2 minutes per project examining NFT rarity. There are free and paid versions, with the latter providing advantages including instant alerts for fresh disclosures and their assessment.
The Traitsniper website is a bit busy and challenging for a new user to use, in contrast to the sites we discussed above. The ability to select a specific NFT to view its rarity score, rarity rank, OpenSea pricing, and highest OpenSea offer is available once you get the hang of it. Additionally, you can view certain features together with the matching rarity score.
The biggest and most well-known NFT market is OpenSea. It not only makes NFT sales easier but also displays the NFT ranking based on volume, price per floor, and other metrics. The top collections from the past 24 hours, 7 days, 30 days, or all time can be seen here. This is a fantastic approach to learn which collections are popular so you can choose your investments wisely. On the blockchains of Ethereum, Polygon, and Klaytn, you can also follow NFTs.
For each NFT, you can view the traits and their rarity, but you cannot view the NFT’s overall rarity rank or rarity score. Although this is obviously a drawback, the availability of a market and real-time rating makes the choice to purchase NFT very straightforward. The optimum choice would be to combine any of the earlier suggested tools with the ranking and activity statistics from OpenSea.
NFT investing, in the end, entails numerous dangers, just like any other asset. Rarity should not be the only factor considered when purchasing an NFT, even though investment vehicles are a great tool for determining an NFT’s rarity. Before making a purchase, it is crucial to conduct your own research and carefully analyze the market.