Just like many other collectibles, for an NFT, rarity is key. But what are rarities in NFT collections? How does rarity impact value? And, how can I know how rare my NFTs are?

Let’s look at these questions one at a time.

What are rarities in NFT collections?

When you are buying an NFT that’s a part of an NFT collection, say Bored Ape Yacht Club, for example, there are a number of things that factor into the value of that NFT. You could pay more or less depending on the popularity of an NFT, the aesthetic values it has, and the community benefits included with purchase. But much of the price of your NFT will depend on the NFT’s rarity ranking.

Rarity, particularly with profile pic NFTs like Bored Ape, has to do with the relative exclusivity of traits in a particular digital asset. Each Bored Ape PFP NFT has characteristics that include:

• background
• clothes 
• earrings
• eyes
• fur 
• hat
• mouth

Users can select NFTs that feature specific combinations of traits that range in rarity overall. A red background, blue fur, and a green hat, for example. 

The fewer NFTs with those attributes, the more rare the NFT will be. And the higher the price. Additionally, there are several variations that are completely unique.

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How to check the rarity of an NFT

To determine rarity, most NFT buyers rely on an NFT rarity checker. There are a number of these types of NFT rarity tools on the web, but one of the most popular is called, simply, Rarity.tools. 

As Rarity.tools explains it, they have developed their NFT rarity calculator “because rarity is one of the most important factors (if not the most important factor) in determining the value of an individual NFT. People want to know how rare their NFT is or whether the one they are looking at buying is rare. And how rare?”

This system, like others, works by tracking trait rarity within individual collections. These characteristics are then used to calculate the overall rarity of NFTs that are available for sale on the open market. Finally, available NFTs are ranked by rarity score.

Another rarity tool, Rarity Sniper, elaborates: “If you're considering buying into an NFT collection after it has been released, then you want to make sure you check the NFT's rarity and how the price compares to others in the collection. Luckily, for NFT collectors, investors, and enthusiasts it's easy to check an NFT's rarity ranking without doing all the math yourself.” 

What this means is that if you wanted to buy an NFT from a particular collection, but wanted to get more clarity on the value of a particular NFT project, you would easily be able to find the rarity score. Then you can determine if the price makes sense to you. 

Other types of NFT rarity

NFT rarity checkers can be very helpful for NFTs within a collection, where there are thousands of profile pic NFTs that look somewhat similar. But rarity is an important attribute for other NFTs as well. 

Sports NFTs, for example, can incorporate rarity in the same way. If the NBA, for example, releases only 5 NFTs featuring a particular slam dunk, those will have a high rarity score. Unlike PFP collections, though, the NBA sells these NFTs in limited editions. 

An NFT featuring Magic Johnson’s hook shot from June 9, 1987, for example, was released in a limited edition of 32. There will only be 32 people on Earth able to buy that particular NFT, as opposed to other collectibles released in batches of 500 or more. As you can guess, the Magic Johnson NFT has a higher selling price and a greater overall valuation.

And, of course, rarities in NFT sales can drive value (and price) for businesses, brands, and  organizations. If your brand, for example, was creating an NFT project to build community amongst your fans, then the rarer the NFTs are, the more appealing. You may consider selling 1/1 NFTs with the same NFT roadmap, as opposed to editions of 100. 

To learn more about NFTs, our NFT Masterclass can get you up to speed. Start your NFT journey today!