As an NFT creator, how to know if your NFT is rare is an important question to ask. However, because this is a relatively new field, there is no one-size-fits-all response. Several extremely rare NFTs have relatively low costs, despite the common misconception that high prices imply rarity. Is the price of a rare NFT a factor in determining its rarity? As far as we know, it’s not really about the price. Price increases are inevitable if proper preparations are made and effective marketing is employed. Continue reading to find out whether your NFT is rare, if it will sell, and how much it is worth.
Read also: Where Should I Store My NFTs?
So, What Distinguishes a Rare NFT From Other NFTs?
Rare NFTs have well-defined features. An NFT is rare if there aren’t many copies of it. The lower the number of duplicates, the rarer the NFT will be deemed.
How Do I Determine the Rarity of My NFT?
The overall rarity of a single NFT can be determined in a variety of ways. This includes:
- calculating rarity based on the rarest feature
- using the average rarity of characteristics
- analyzing rarity statistically
All of these strategies, however, focus on the overall characteristics of the NFT rather than a specific one. Because of this, Rarity Tools came up with a “rarity score” system.
How Does Rarity Work?
The characteristics or traits of an item are used in a mathematical procedure to obtain a rarity score.
[Rarity Score for a Trait Value] = 1 / ([Number of Items with that Trait Value] / [Total Number of Items in Collection])
The sum of the Rarity Scores for all of an NFT’s trait values is the overall Rarity Score for the NFT.
Rarity.tools takes into account the rarity of all the attributes that make up an asset, rather than just the rarest one.
This indicates that even if your NFT has a 1% trait, it is not among the project’s top 1% of assets. The tool examines the complete picture.
It’s also important to keep in mind that an NFT’s final market value is what matters the most. Even if Rarity has picked a model that they believe in, you may come across a project where one characteristic is more desirable than the others.
It’s possible to assess the rarity of your NFT using these other tools:
- Rarity Sniper
- OpenSea rankings
Read also: Can You Sell an NFT on Multiple Platforms?
How To Know If Your NFT Will Sell
An NFT-based digital artwork sold for USD 69.35 million, therefore it’s reasonable to assume that most NFTs are worth a modest or significant amount of money. There are hundreds, if not thousands, of esoteric tokens available for sale at modest prices for every multi-million-dollar NFT.
Because of the large number of NFTs on the market, how can you tell if yours will sell?
Whether or not your NFT will be a success relies on its category and what it stands for. With art or collectibles, the NFT’s ability to sell depends on the marketplace. There is likely to be a demand for NFTs that can be used in games to win prizes because they have value.
However, the future worth of certain NFT artworks or collections can’t be predicted with any degree of certainty, which makes it difficult to price them.
The NFT may attract a premium price if the artist who created it is well-known . However, projecting whether it will continue to climb in the future is almost challenging. It’s also impossible to guess which of an artist’s or creator’s NFTs will be the most valuable in the long run.
How Do You Know What Your NFT Is Worth?
Because NFTs are a novel asset class, it’s impossible to estimate their exact worth. Physical artifacts, such as the Mona Lisa or NBA player cards, have established prices. As a result, some investors looking at NFTs may find it difficult to assess the value of a particular asset or collectible.
When assessing an NFT’s intrinsic worth, there are three things to keep in mind.
This is a measure of how difficult it is to acquire a certain NFT. First-of-its-kind artwork by a well-known digital artist or an NFT made by a well-known celebrity are examples of rarity. The effect that such an NFT would have in, say, a video game that allows you to utilize that NFT is another rare consideration.
Such NFTs have a high intrinsic value since they contain the blockchain evidence of ownership, which makes them appealing to potential buyers. An NFT’s premium value is determined by this distinctiveness and legitimacy.
There is a positive correlation between the price of NFT and the likelihood that it will be used in a real-world context. You don’t have to be a fan of collectibles to appreciate unique tokens.
It is typical to see gaming items styled in this manner: virtual land plots, avatars, weapons, and talents for games.
Tokens are also more valuable if the project they will be utilized in is well-known. In other words, as the number of people playing decentralized games rises, so will the price people are prepared to pay for a unique card.
The immutability of ownership provides value in the form of tangibility for some NFTs. An NFT can be used to secure ownership rights to just about anything. There are certain NFTs tied to actual objects that can be “felt”, although they are rare. As evidence of ownership, a cryptographic token is used in this instance.
The rarity of an NFT must be established before it may be sold. Putting a fair rate on your asset will enhance your reputation as a seller. It’s also possible to lose a lot of cryptocurrencies if you undervalue it.
So, how do you know if your NFT is rare?
Rarity Tools may be used to determine the rarity of your NFT. Rarity makes the process of determining the relative rarity of various assets easier for you. This tool is essential for determining the correct selling price of a product to:
- guarantee you don’t charge too much for a less rare item, and
- ensure rare items are sold at a fair price.