Main conclusions

  • When purchasing an NFT, you can rely on a few basic characteristics to help determine its potential value. Rarity level is one of the key qualities that many collectors look for.

  • As the name suggests, the rarity of an NFT indicates how scarce the piece is compared to the rest of the collection.

Since non-fungible tokens (NFTs) became widely available, billions of US dollars have been transacted in total, and this figure is expected to grow in the coming years.

Celebrities and established brands alike are releasing NFT collections all the time, so it's no surprise that we hear about new projects every day. However, keeping up with developments in such a dynamic market can be very difficult, especially for newbies.

How do you know if the NFT you have your eye on is worth the asking price? To help you more accurately determine the potential value of an NFT and decide whether to include it in your portfolio, we've prepared a detailed guide to NFT rarity and its role in your buying strategy.

What is NFT rarity?

Some NFT collections are more valuable than others, and even within the same collection, not all tokens are created equal. The rarity of an NFT is determined, among other things, by the unique combination of characteristics of the digital asset within the collection to which it belongs. Some NFTs are more difficult to obtain and this directly affects their market value.

According to the economic concept of scarcity, NFTs with rare characteristics typically sell for a higher price and are more in demand. Collectible tokens with higher rarity levels may also provide additional benefits, such as exclusive club memberships or access to limited-edition merchandise.

Let's take the Bored Ape Yacht Club (BAYC) collection as an example. It includes 10,000 monkey-themed NFTs, with each token being visually unique. Avatars have different levels of rarity depending on what the monkey is wearing, what he is doing, and what is in the background.

Each avatar has seven attributes: background, clothing, earrings, eyes, fur, hat, and mouth. Each of them can be presented in different images and styles.

Because each skin appears a limited number of times in a collection, some tokens are statistically rarer—like Shiny Pokémon in the Pokémon universe. NFT BAYC with a combination of rare attributes will likely be worth more than options with more common characteristics.

How to Check NFT Rarity

To get more detailed information about the rarity level of an NFT, you can use special programs or platforms that calculate this indicator and rank NFTs based on it. To evaluate, these tools can look to blockchain explorers and other data sources to provide users with a more complete understanding of a given asset. They also take into account factors such as popularity, trading volume and ownership history of each NFT.

How rarity affects the value of NFTs

As with physical works of art, the price of an NFT is determined by many factors. Rarity is an important factor in the market value of an NFT, but demand can also be influenced by features such as use cases, aesthetic qualities, exclusive access, and the reputation of the founding team or project creator.

In addition, the price may vary depending on what properties are valued in a particular community. For example, in some cases, an NFT without rare attributes that was first in a popular collection may end up being more in demand than a statistically rarer NFT.

Ready to build your own NFT collection? Visit the Binance marketplace today.

How to Check the Rarity Level on Binance NFTs

With the Binance NFT Market's built-in rarity ranking system, collectors and traders can easily make informed decisions when evaluating different NFTs in Mystery Boxes. When you open a collection in a mystery box, NFTs can be easily sorted by rarity level.

On the Binance NFT Marketplace, you can also search for NFTs within projects based on specific characteristics. Simply go to the page of the NFT collection you are interested in and find the filter on the left side of the screen.

Select which attributes you are interested in (such as glasses, hair, and eyes). This page also lists the properties of a particular NFT and the likelihood of each attribute being present.

Finally, if you go to the page for a specific NFT mystery box, you can see an overview of the rarity levels for that collection.

Conclusion

While rarity is an important metric by which the value of an NFT is assessed, it should be considered only as one of several components and not as a determining factor. There is no surefire way to predict the exact value of an NFT, and some collectors may prioritize the aesthetic qualities of the NFT over its rarity. Always do your own research (DYOR) and understand all risks before purchasing collectible digital tokens.

Build your own NFT portfolio today

Discover exclusive NFT collections on Binance NFT, a marketplace connecting artists, digital creators, and NFT fans to trade non-fungible art, collectible tokens, and more. Follow us on Twitter and Telegram for the latest news and promotions, such as our weekly IGOs ​​and exclusive mystery box releases!

To learn more, check out the following articles:

  • (Support) How to start using the Binance NFT Marketplace

  • (Blog) Meet the updated Binance NFT marketplace

  • (Blog) NFT Display: How to Best Showcase Your Collection

  • (Academy) Top 7 Uses for NFTs

Denial of responsibility. Trading NFTs is unregulated and involves high market risk. Make transactions with caution. No compensation is provided. By participating in this activity, you understand and agree that you assume all risks associated with it. Any information on the Binance NFT Marketplace should not be considered or interpreted as recommendations or advice.