Just like humans non-fungible Tokens (NFTs) are each one of a kind. Even when they look the same the difference comes from the metadata which is the description in the code of each item.
Rarity in the NFT space refers to how differentiated the NFT is in a collection based on its properties which can be checked through tools like Rarity.tools for Ethereum howrare.is for Solana
Attribution: The icons has been designed using resources from Flaticon.com
You may wonder why rarity matter? It is important because part of enjoyment and gamification of the NFT space is to collect and get exclusive benefit for holding the rarest ones. Of course each person has different preference. Some are after the rarity while others are after the art.
Follow me @Marshoush90 so we have more votes in the future!
What is Rarity in NFTs?
As defined by Cambridge Dictionary, Rare means:
not common or frequent; very unusual
As a human nature, we like to have something that is unique and special for us so the rarity help us identify the unique item in the collection and it also allows us to find what is the rarest “objectively”.
Below are different type of ways identifying collections rarity
Potential Exclusive Access
Buying a NFT with a certain rarity/tier will separate the value between certain collection into different levels and provide buyers options with different price ranges.
For example, a project called BahraineesNFT provide different rarities by giving more Token reward for holders based on how rare the NFT they bought.
Source: https://bahraineesnft.app/
As you see above, this collection has four tiers which provide holders different amount of token rewards. For example, a common NFT in this collection would be rewarded 1,625,000 $Palm Token while the legendary ones will get 5,000,000 $Palm Tokens. If you are interested in reading more about this project check it out in this link.
Having said that, this collection will explicitly reward the rarest items in the collection thus can be identified based on the tier level specified by the project creators.
Collectible
OK, now let us look at the collectibility aspect which is the fun part of rarity.
Unique Art
Certain NFT projects create one of ones collections where rarity is not necessary present. Buyers mainly buy what they like and not pay attention much to rarity, thus demand is driven mainly subjectively. For example, below Art Blocks is one of these type of projects.
Source: https://opensea.io/collection/art-blocks
Here the rarity could be identified based on the supply/demand of buyers preferences.
Based on Properties/Metadata
Other collections have similar artwork but with unique properties in each one. It makes the collection recognisable as a brand, but still present differentiated traits for buyers to be able to grab the best ones.
Source: https://opensea.io/collection/cryptopunks
As you see on the above the two Cryptopunks, one on the left is the rarest in the collection and on the right is the least rare. you will notice the difference in number of traits they have (on left has 9 traits and on right has 4) and also the percentage of how common each trait is in comparison to the whole collection. With such traits we can easily identify which ones are the most unique thus most rare.
This method is the most objective way of identifying rarity which is determined through properties and metadata of the items in a collection.
Just Metadata
Another type of rarity identification is just determined primarily by the metadata. For example, on VeVe where users will buy the exact same item in a NFT collections with only difference is the serial number. The serial number have influence on the value of the collection.
An item with serial number of #100 or less is usually valued more and also the number that refers to a key date, or just that look nicer tend to be more valuable amongst collectors.
Source: veve.me
As you can see in the above example how prices differ just because the number of the same item is different.
Tools you can use
If you want to buy NFTs based on their properties and number of traits you may find it difficult to analyse a full collection. No one wants to check 5,000+ items one by one right?
I will share with you guys two rarity tools you can start with in the most common NFT networks which are Ethereum and Solana.
What is a Good Ethereum Rarity Checker Tool?
For Ethereum a well known tool is Rarity.tools. All you would have to do there is to search the collection on their website and sort them by their rarities and prices.
Source: https://rarity.tools/cryptopunks
What is a Good Solana Rarity Checker Tool?
For Solana a useful tool is Howrare.is and it has the same concept where you can search a collection and then go to the tool to see which ones are the rarest based on their traits.
Source: https://howrare.is/degenapes
If you are interested in analysing properties of NFTs and figure out how these tools work, Check out this Medium article which explains the process on how they analyse the rarity of a NFT.
Final Thoughts
Knowing about NFT rarity is exciting and makes the collection more fun to with. Just keep in mind even if you buy a rare item it doesn’t mean that you would be able to sell it quick.
Sometimes you can snipe certain rare NFTs and be able to sell it to higher profit but its not always quickly.
Personally, I would always go for a collection that I enjoy having rather than just for the rarity.
Related Posts:
- 12 NFT Marketplaces you Should use
- What NFTs Should I buy? a Comprehensive Guide
- What are Solana NFTs? Are they better than Ethereum?
Disclaimer: Above links are affiliate links and at no additional cost to you. I may earn a commission. Know that I only recommend products, tools, services and learning resources I’ve personally used and believe are genuinely helpful and relevant. It is not because of the small commissions I make if you decide to purchase them. Most of all, I would never advocate for buying something that you can’t afford or that you’re not yet ready to implement.