NFT rarity is one of the many factors determining an NFT’s worth. An NFT, such as a CryptoPunk, can be worth a thousand dollars, while another may be worth just a few bucks.
Sometimes, NFTs can be minted for free. But why such a drastic price difference between and within NFT collections? The rarity of an NFT within its NFT collection determines its worth. Let’s learn more about NFT rarity.
What is NFT Rarity?
An NFT’s rarity is a numerical score that shows how scarce an NFT is within a particular NFT collection.
If you look closely at the information accompanying each NFT, you’ll realize each NFT has a set of some common and rare traits. This unique combination determines the worth of an NFT against other NFTs within the same collection.
Are Rare NFTs Valuable?
The rarer an NFT is within a collection, the higher its price in relation to the floor price for that particular collection.
But how to find which NFT is rarer?
Within a collection, thousands of permutations and combinations of common and rare traits give birth to unique NFTs. Among the many, it is hard to point which one is rarer just by looking at them.
For that, each NFT is given a rarity score. This score can be calculated using different methods or using NFT rarity tools. For instance, the NFTs in the original BAYC collection have seven broad characteristics. The rarity score for each NFT will be the combined score of the rarity of each of the seven traits.
Do Game NFTs or Collectibles Have Rarities?
P2E game NFTs come in multiple categories of rarities, skins, and attributes. For instance, the Crystals of Fate NFT collection has Common, Rare, Epic, Legendary, and Mythic categories, each card rarity category more scarce and valuable than the previous.
Its Genesis Sale Secret Legendary and Genesis Sale Secret Mythic cards come under the rarest of rare categories and would be the most-priced possessions for any gamer active on the COF scene.
What Makes Game NFTs Rare and Valuable?
Beyond rarity scores, a few important factors should be considered while determining the worth and profitability of any game or card NFT collection.
These are as follows:
- Supply: More the supply, less the rarity and worth.
- Demand: The more the demand, the more the worth.
- Provenance: Original artworks, collectibles, game cards
- Celebrity angle: When celebrities launch or buy a particular NFT, its worth automatically improves
- Attribute: additional utilities and rights accompanying the NFT
Let’s take an example to understand this better. COF did a Genesis Sale of its NFT cards in card packs with cards of different rarities. The Genesis Legendary Card Pack worth $49.99 contains One Legendary rarity card and increased chances of pulling out cards such as:
- Common – 64% chance
- Rare – 22.5% chance
- Epic – 9.5% chance
- Legendary – 3.5% chance
- Mythic – 0.5% chance
As the rarity of the cards in the pack increases, the offer price increases and vice versa.
Similarly, look at a BAYC card on Rarity Sniper.
The #73 card has a rarity rank of 8 and was last sold for 30 ETH. Another BAYC card, #2646, with a rarity rank of 72, was sold for 4 ETH.
Rarity Matters For Your NFT Collectibles!
While rarity is useful for analyzing the worth of an NFT within a collection, other factors come into play, too, while measuring the relative profitability of an NFT within a collection and the value of an NFT collection as a whole.
COF’s NFT cards are in-game collectibles and provide multiple levels of utilities within the COF game. Get your scales out and grab your favorite skins and collectibles – just be sure they are rare enough.
The post Unlocking the Secret Sauce: The Shocking Reason NFT Rarity Is the Hidden Gem You Can’t Ignore! appeared first on Analytics Insight.
Source: https://www.analyticsinsight.net/unlocking-the-secret-sauce-the-shocking-reason-nft-rarity-is-the-hidden-gem-you-cant-ignore/