Learning how to evaluate rare NFTs is a learnable skill, and anyone can do it. Whether you are looking for your first NFT or have just bought a new NFT, wanting to know what makes a rare NFT project doesn’t have to be complicated. Will help you understand how to determine the overall rarity of an nft in a collection.
We wanted to compile a guide on determining rare nfts based on two factors: Trait Rarity and Asset Rarity of an NFT. For example, What’s the difference between a crypto punk or bored ape nft? And why are they so rare when crypto punks have little detail and are still among the top 5 most rare nfts.
This article analyzes the well-known nft collection called ‘Rebel Rabbits,’ providing real practical examples of properly assessing and determining the actual value of an upcoming nft project.
What makes an NFT rare?
Rarity is determined by multiple factors, such as Trait Rarity (TR), making specific characteristics like Eyes, Background Colors, or Effects increase the value of an NFT when compared to others. Additionally, Asset Rarity (AR) is used to determine the utility of the NFT as a whole, allowing scoring and ranking.
A rarity score provided by online blockchain rarity tools becomes a reliable way of checking how rare an NFT is before, during, or after purchasing it.
However, sometimes an NFT can be completely worthless; and the community can be priceless bring all the value. Value is the exchange of energy and comes in multiple forms: attention, money, influence, access, power, and more. In addition, rare NFTs provide a social status and new cultural norms unlike any other.
What makes the “NFT” worth having to these people when it’s not rare, unique, or valuable?
Or is this just the modern-day “baseball card?” Everyone hoping or trying to get one worth some money.
While not every NFT is rare, the ones that become most valuable are mainly due to the quantity available in the first place. Once an NFT project is sold out, such as Crypto punks and Bored Apes, the values rise because demand will remain whole solid supply is limited. However, projects like Rebel Rabbits which are getting minted (3,631 or 39% left remaining), will continue to see changes in their price.
For example, with baseball cards, you can get a pack of 50 cards and happen to land only five rare cards, which could earn you more than what you originally paid for the pack. However, what makes NFTs different is how they hold their value over time and transparency in seeing their worth using a digital ledger on the blockchain.
Now you can see the nft cost and selling price. If you had a baseball card, you wouldn’t get any of that information other than who sold it to you last.
Overall evaluating nfts comes down to
- Trait Rarity
- Asset Rarity
- Quantity Available
Additionally, there are more items for consideration beyond the NFT, such as their community, roadmap, and transaction volume trend. Use these numbers to find the total rarity score and determine which nft is rare.
Here’s a great video on how to evaluate the rarity of nfts:
What is a rarity score?
A rarity score is a calculation used for evaluating and assessing the value of an individual NFT within an NFT collection using a formula that analyzes Trait Rarity (TR) and Asset Rarity (AR). It’s a form of modeling the publicly available data on the blockchain to determine the worth of an NFT using a weighted score. Essentially, there’s a score for a trait and based on the total number of items for each collection.
Websites such as “Rarity Snipper” leverage the rarity score to make it used for nft collectors to browse the latest collections and determine which one is worth investing in or checking the price of an nft they’ve already purchased.
Is a higher rarity score better?
A high rarity score suggests that this nft has an exclusive or limited number of trait characters available out of the collection. Also, the overall ranking within the collection is high, likely between 0 – 10 or with a low meta trait number. This rarity ranking system helps you determine which nfts are rare.
For example, one of the rarest rebel rabbits, nfts, has a rarity score of 645.38 and is a part of the meta trait category of 4, which is the lowest for this project. You’ll notice there’s more items with that trait and less with a highly rare trait.
Alternatively, it’s the same case for bored ape yacht club nfts as well. Take a look at this:
How to Assess the Value and Worth of NFT’s
NFT rarity depends mainly on demand and supply, and celebrities or other influencers can also impact it.
It starts with breaking down the traits and how rare each trait becomes compared to the rest. Then we can consider if they are available for sale on Open Sea or if they are within our budget. Look at the number of items in the collection first and then identify the score for an nft.
Use the formula “trait value total number / sum of the rarity’ to get a rarity score. The overall Rarity Score (RS) for an NFT is the sum of the Rarity Score of all traits.
out all your ‘buyable’ options in an excel sheet and determine how much a trait is worth compared to each other. Sometimes an NFT can be rare; however, it can be not for sale, and that’s no good if you are looking to buy rare NFTs.
A rare NFT isn’t worth anything to you if it’s not for sale unless you make an offer, and you need to know how much of an offer you should make without overspending.
Suppose you join Rarity Sniper’s discord community. In that case, they offer a ‘rarity check’ channel dedicated to supporting new collectors by adding an ID, and it will provide a read-out of how rare the nft is automatic.
Also, it has a dedicated channel to check the gas prices in real-time to purchase the nft by adding the word “!gas”.
Why Utility is a Requirement for NFT Rarity
Rebel Rabbit’s rarity is an excellent example of how they also incorporate elements in their roadmap that makes you feel a sense of belonging to a greater mission “We Are The Rebels… We Are The Upraising #WATU”.
Exclusive Comic reader capabilities and access to the comics forever when you mint your first mask with Rebel Rabbits show that they are building a community centered around artwork and illustrations.
Also, they are keeping in mind that these masks will work well in the metaverse.
Remember to Slow Down When Looking for Rare NFTS
Staying focused on Trait Rarity (TR), Asset Rarity (AR), and Quantity when evaluating how rare a nft is a must. You’ll learn about the latest nft projects available on Open Sea in the process. However, it can become addicting and overwhelming.
It’s easy to analyze these nfts on a ‘day-trading’ or ‘flipping’ wave; however, it’s such a changing environment that it can become challenging to keep up. So, take it easy and think of these nfts as long-term investments.
We have to remind ourselves that burnout can happen to anyone of us and while finding rare nfts using these tools may be fun, always take a break when you need one.
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