What is Rarity.tools? Beginner's Guide - CoinNav.io

NFT rarity pertains to an NFT that showcases an exclusive and exceptional amalgamation of attributes within a given collection. The greater the rarity of an NFT's attributes within its collection, the higher its classification as a rare entity, thereby augmenting its potential value.
In the past, NFT enthusiasts depended on NFT rarity assessment utilities to ascertain the rarity (and corresponding value) of their prospective acquisitions.

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What Impacts NFT Rarity?

Distinctive Attributes

An NFT's traits encompass its singular characteristics. These traits constitute the defining features that shape an NFT. While all NFTs possess traits and may share certain traits with others in the same collection, the presence of two NFTs boasting entirely identical traits is an impossibility.

NFTs bearing rarer and more unique traits within their repertoire are deemed scarce, with the ultimate rarities often termed Grail NFTs. These extraordinary traits, due to their scarcity, hold a heightened value compared to the remaining NFTs within the collection.

An illustrative instance lies within the Bored Ape Yacht Club (BAYC) and its "Trippy Fur" trait. This psychedelic fur trait, an epitome of rarity within the Bored Ape collection, exists in a mere 77 instances across the entire BAYC spectrum. Consequently, apes donning this distinctive trait command a higher price tag within the BAYC ecosystem.

Supply and Demand Dynamics

The NFT marketplace functions underpinned by the dynamics of supply and demand. NFTs possessing exceptional rarity typically attract considerable attention due to their scarcity. Since the supply of these prized NFTs falls short of the market's robust demand, their valuation surges.

Naturally, the overall popularity of the collection must also be taken into consideration. Take the instance of Bored Apes, an immensely sought-after collection encompassing 10,000 Bored Ape NFTs. As of the present, the floor price for these NFTs hovers around 60 ETH. This implies that the least rare NFT within the collection is priced at 60 apes. On the other hand, NFTs with rarer attributes like "Trippy Fur" or "Laser Eyes" command substantially higher prices.

 

What is Rarity.tools

Rarity.tools stands as an online platform exclusively designed for assessing the rarity of generative art and collectible NFTs. The platform assigns rankings to these NFTs based on their levels of rarity. Users are granted the capability to peruse, appraise, and juxtapose NFTs using the rarity rankings assigned to individual collectibles. Furthermore, developers are afforded access to the rarity rankings of these NFTs. Among the NFT projects currently featured on the platform are CryptoPunks, Hashmasks, Waifusion, Chubbies, and the Bored Ape Yacht Club.

Rarity.tools enables users to compute rarity utilizing four primary calculation methodologies. These methodologies encompass the trait rarity model, the mean trait rarity model, the statistical rarity model, and the rarity score model.

 

How To Calculate NFT Rarity?

Determining the NFT Rarity Score lacks a universally accepted "industry standard." Different NFT platforms tend to adopt their own unique calculation methods.

Nonetheless, several prevalent approaches for calculating rarity scores exist. Here, we provide a concise overview of the four most commonly utilized methodologies.

Trait Rarity Hierarchy

Typically, each NFT comprises numerous traits or attributes. The trait rarity hierarchy approach is straightforward - it assigns a rarity rank to an NFT based on its scarcest trait. The greater the rarity of this primary trait, the higher the overall rarity ranking.

However, this method solely focuses on the most unique trait of an NFT, often disregarding other noteworthy rare traits. Thus, the calculation may present discrepancies. For instance, an NFT featuring several moderately rare traits might be deemed less valuable than another NFT with a solitary yet exceedingly rare trait, accompanied by common attributes.

Average Trait Rarity

This methodology involves a straightforward average of all individual traits. For instance, if an NFT possesses two traits, with trait one averaging a rarity of 20% and trait two averaging 10%, the overall average rarity is 15% ([20% + 10%] / 2). Nonetheless, this approach overlooks the distinct rarity of individual traits.

Statistical Rarity

Another calculation technique is rooted in the statistical rarity of each trait, obtained by multiplying the scores of individual traits. For instance, if an NFT bears two traits, one with a rarity of 20% and the other with 10%, its cumulative score is 2% (20% * 10%). Like the average trait method, this approach may overly emphasize cumulative trait rarity.

NFT Rarity Score

One prominent platform in the NFT realm is rarity.tools, recognized for its NFT rarity ranking and scoring. To address the limitations of prior methods, its founder devised the NFT rarity score. This novel calculation incorporates both individual and overall traits.

To compute the NFT rarity score, you first determine a score for each trait individually using the following formula:

[Rarity Score for a Trait Value] = 1 / ([Number of Items with that Trait Value] / [Total Number of Items in the Collection])

By summing up these individual scores, you derive the comprehensive NFT rarity score. A higher score indicates greater rarity and, consequently, enhanced NFT value.

 

In Conclusion

Rarity Sniper stands as a frontrunner in the realm of NFT analytics platforms and communities. Its core mission revolves around aiding users in gauging the rarity of their NFTs spanning a multitude of blockchain networks. Through meticulous analysis of metadata and the strategic implementation of a scoring algorithm, Rarity Sniper streamlines the intricate task of identifying prized NFTs within the dynamic expanse of the marketplace. With its remarkable compatibility across more than 20 Layer 1 and Layer 2 blockchains, and its seamless integration with over 2000 collections, Rarity Sniper emerges as an indispensable asset catering to the diverse needs of both collectors and investors.