How to Check the Rarity of an NFT
NFTs are unique non-fungible tokens on a blockchain that can have different traits of varying rarity. As an investor, rarity is important as it makes an NFT more valuable. Consequently, these non-fungible tokens can be scrutinized for rarity by applying something known as a rarity check. How the rarity of an NFT can be assessed will be discussed further in this article.
What Is an NFT?
Non-fungible tokens (NFTs) are crypto assets that represent ownership of something unique tokenized on a blockchain. NFTs enable you to tokenize real-world assets like artworks, digital images, or music tracks with a token rooted in a blockchain (digital twin) specifying what is owned by whom according to this blockchain.
NFTs are non-fungible in that one token can’t be exchanged for another equivalent token. Remember, fungible tokens, like fiat or cryptocurrencies, can be traded or exchanged for one another as they are perfectly interchangeable. For instance, one ether is always equal in value to another ether. NFTs on the other hand are digital representations of assets, and each token contains a unique non-transferable identity that is distinguishable from other tokens.
In summary, NFTs allow for a decentralized, universal digital representation and ownership layer in the virtual, where uniqueness, authenticity, and scarcity can be transparently managed.
About the rarity of NFTs
Have you ever wondered why some NFTs have been valued at millions of dollars while others are almost worthless? Ultimately, an NFT’s value comes down to the subjective valuation by different human beings. However, because NFTs are unique, they are also provably scarce. As such, scarcity is an important aspect in shaping an NFTs value.
While NFTs are indeed unique, they can be part of an overall collection. Among the most popular NFT collections are CryptoPunks or The Bored Ape Yacht Club (BAYC). Important to note: Either collection consists of 10,000 unique NFTs. All of these NFTs within a collection are unique because of their unique token ID. However, the token ID is not the only thing distinguishing these NFTs. Because of different features, some of them are rarer than others, which goes to show that NFTs within a collection have different rarity scores.
As a consequence, rarity is a defining factor in determining what an NFT is worth within the context of a collection. Used in this context, rarity means how scarce or incomparable an NFT is, which in turn can dictate how valuable such a collectible can be. The higher an NFT’s rarity score, the potentially more valuable the NFT can be.
For instance, the Bored Ape Yacht Club, which is popular among celebrities, has incorporated certain accessories, apparel, or traits to increase the rarity scores of some Apes. You will notice that out of the 10,000 Apes, less than 0.5% have “solid gold fur,” making apes with this trait to be coveted by collectors.
Having said that, NFT collectors often rank collectibles from a collection based on their rarity, and they want to ascertain how rare or exclusive an item is before purchasing it. The rarer a collectible is, the higher the price it can potentially be traded for.
Related RV Episode: How NFTs Can Help Grow a Business
How to Assess the Rarity of an NFT
To calculate the rarity of each NFT, it is important to compare the properties of each NFT against another.
The gross rarity can be determined by either identifying the rarest attributes or by using statistics to undertake a rarity assessment. Therefore, the total rarity score will be the sum of the rarity score of all the gross features an NFT has. The properties usually considered are “physical” properties such as fur, hats, clothes, and accessories like necklaces, etc. Remember, NFTs are non-fungible, and thus not all NFTs in a collection will have all these attributes.
Here are four different methods used to technically assess the rarity of an NFT.
Trait Rarity Model
This model works by simply comparing the rarest trait of each NFT. This means that the NFT with the rarest trait would be ranked at the top of the rarity score. However, the model does not compare the total number of traits or other traits of the NFT.
Average/Mean Trait Rarity Model
This model calculates the average of all the rarities possessed by an NFT. It considers all traits and uses the averaging method to identify a particular NFT trait. This means that the sum of traits in an NFT is taken and divided by the total number of traits in an NFT to arrive at a score.
Statistical Rarity Model
This model incorporates general rarity, which means that it calculates the overall rarity of an NFT by multiplying all the traits together. For instance, if an NFT possesses two traits, one trait at 25% and the other at 40%, then according to this model the score would be (25% x 40%) = 0.1%.
The Rarity Score Model
This model is by far the most accurate of all the above methods and is calculated as per this formula:
Rarity Score for a Trait Value = 1 / ((number of items with that trait value) / (total number of items in collection))
According to Rarity Tools, the total rarity score of any particular NFT is the sum of the rarity score of all trait values in a specific NFT.
Top NFT Rarity tools
Although the methods of assessing rarity are straightforward, they are a little technical. However, there is no need for you to do all the calculations by yourself. A rarity explorer can help to filter and drill down into NFT collections, thereby making it possible to discover rare NFTs. Several NFT rarity tools can assist you in this endeavor. They include:
Rarity.tools is among the most popular NFT assessment tools. The tool ranks the rarity of each NFT trait in real time. The platform has an attractive user interface that ranks some high-performing NFTs like CryptoPunks, Bored Ape Yacht Club, and VeeFriends.
OpenSea is by far the world’s largest NFT marketplace and offers NFT rarity rankings based on floor prices, volumes, and other factors. You can view NFT traits as well as each trait’s rarity, but an overall NFT rarity score is not available on OpenSea.
Rarity Sniper is a popular NFT-analysis tool that is home to close to 1,000 NFT collections from major networks like Ethereum and Solana. Using Rarity Sniper, you can view all your NFT’s traits, rarity scores, and ranks. As an easier way to assess your NFT’s rarity, you can also turn to the Rarity Sniper Discord channels to assess the rarity of your NFT.
Moby.gg is a real-time NFT tracking tool. Moby.gg offers you basic NFT rarity rankings such as NFT traits, markets, and mints. The platform is easy to navigate and lists all the rankings at the top of the homepage. Moby has a Pro version that gives you up to 6 months’ worth of access to real-time information, historical data, statistical charts, NFT signals, wallet alerts, and popular mints.
Trait Sniper is a rarity tool that offers up-to-date data on upcoming NFT projects. TraitSniper relies on a bot to calculate the rarity of an NFT as soon as a new NFT collection pops up. You can click on any listed NFT and its rarity score will appear. Besides the free version, there is a paid version of Traitsniper that sends you real-time notifications for new NFTs as soon as they enter the market.