With NFTs gaining huge popularity, more and more investors are intrigued by the potential value that could be unlocked by NFT investment rarities. By analyzing factors like trait frequency, 1/1 traits, and using rarity tools, investors can better determine the rarity score and relative value of investment NFTs. This allows making more informed decisions when investing in NFTs. Let’s explore what constitutes rarity for investment NFTs, how rarity is calculated, and the key rarity tools you need to know about.
For investment NFTs, rarity comes from trait exclusivity and scarcity
The rarity of an investment NFT is generally driven by the exclusivity and scarcity of its traits and attributes. For profile picture (PFP) projects, rarity is derived from rare traits, as well as trait groups, sub-traits, and 1/1 traits. Strategies that utilize different trait rarities to create varying levels of scarcity have proven successful in establishing detectable rarity. Extremes like 1/1 editions also drive rarity through limited supply. Additionally, specific traits tailored to community preferences can make normally common traits rarer and more valuable.
Rarity score calculates investment NFT rarity accurately using a proprietary formula
While there are multiple ways to calculate rarity, the Rarity Score method has emerged as the most accurate. Pioneered by rarity.tools, it uses a formula that accounts for bias in previous scoring models. The formula considers the rarity of each trait as well as how many total traits each NFT has to generate an objective rarity ranking. This prevents overvaluing NFTs with just one rare trait. The formula has become an industry standard for mathematically determining investment NFT rarity.
Rarity Sniper and Rarity Tools provide the best rarity analysis for investment NFTs
Rarity Sniper is a leading rarity tool with a loyal community and data on almost 1800 NFT collections. It offers full analytics and a calendar of upcoming drops. Rarity.tools allows using all four major rarity calculations to filter. It enables analyzing specific traits not seen on other tools. While the UI is more complex, it’s uniquely in-depth for invested collectors. Trait Sniper has comprehensive filters and data tables for easily screening. Icy.tools provides advanced charting and a clean UI. Each has strengths for analyzing investment rarity.
By leveraging proprietary rarity formulas, trait analysis, and purpose-built rarity tools, investors can objectively determine the rarity and potential value of investment NFTs. Understanding rarity derivation strategies and using the right tools levels the playing field when assessing investment opportunities in this exciting new area.