It is a wild and confusing world out there, and the introduction of the blockchain only opened an entirely new space of cryptocurrencies, NFTs, and Web 3.0. To fully understand some of the complex aspects of the industry, it is important to break down the definitions of the newly formed vocabulary.
Additionally, learning the tools of the trade can help you go far, so long as you are looking in the right place. Researching topics is best done with trusted resources, such as FLOLiO, in order to be sure you are getting the most updated and factual information.
The features of the world wide web are always changing, and new tools are constantly added into the mix. Today, we will break down the intricate world of NFT’s and their rarity rankings.
What Is an NFT?
Before you can even begin to fathom what a rank has to do with an NFT, it is wise to first have a firm grasp on what an NFT is. You may have limited knowledge of this new online space, but once you get a handle on the terminology and processes, you can become a pro in no time.
Let’s take a look at the NFT itself before we discuss traits such as rarity.
Non Fungible Tokens
The abbreviated form of the NFT is most commonly used online. You know the Internet. Users are always trying to find shortcuts to say what they mean. In this case, the NFT simply stands for the non-fungible token. But, what is that? And how do they work?
Let’s break down that phrase even further to fully comprehend the attributes that make it up. From there, we will have a better understanding, too, of characteristics such as rarity and how they can impact the value of such an object.
The “non-fungible” term may sound strange, but its meaning is rather simple. Something is nonfungible if it cannot be replaced. It cannot be traded directly for another. There is no equal.
It is a unique item. In the case of NFTs, it is the addition of the last word that helps the blockchain economy function.
In its most basic terms, a token is something that stands in for something else. You likely have encountered the term in the video game arcades of old. You would enter the space and exchange your dollar bills and coins for golden tokens, emblazoned with the logos and catchphrases of your favorite gaming spot.
In the case of NFTs, those tokens are the way that dissimilar items can be evaluated against one another. For example, you can’t compare apples and oranges, as the old adage goes. But, if you know that three apples are worth one token and five oranges equal one token, you can easily deduct that they are of equal value.
This complex world of NFTs (and its existence alongside cryptocurrency) is made possible thanks to a technology called the blockchain. Many describe the blockchain as a distributed ledger. But, what does that mean exactly?
Understanding the science behind it, not to mention the ethical pillars on which it stands, you can get a better grasp of how these technologies work together to form NFTs.
The Science Behind the Blockchain
The blockchain in technical terms is a series of data containers (called blocks), strung chronologically together in a string (called a chain). It is often called a distributed ledger because the blockchain’s information includes all of the comings and goings of its entity. For example, if it is the blockchain for a specific NFT, it will show you the owner of that item from the time of minting (creation) to the current location.
Likewise, users can track the existence of any cryptocurrency, as well. Each and every transaction must be recorded in this ledger and distributed by the nature of the blockchain.
The chain is distributed in that the interconnected peer-to-peer network of decentralized users each has a copy of the data. This way, no central server, and by default, no central authority, can touch those immutable blocks of information.
The Motive Behind the Blockchain
While this science clearly leads to a secure and efficient operation, it also helps to support the concepts behind the blockchain. Users of the “new” web often dubbed Web 3.0, which includes the use of crypto and NFTs, enjoy the blockchain also because of the freedoms and flexibility it creates.
Cutting out third parties and allowing users to make transactions among one another, without the central authority overseeing those exchanges, allows for a rather self-governing space. This cuts down on costs, as additional and unneeded third parties are removed. They also maintain a security level via the distributed nature of the model. This boosts confidence in an entity without the need for major corporate names or reputations.
Blockchains and NFTs
In the case of the NFT, the blockchain makes unique and verifiable ownership possible. An NFT is minted online. From there, each and every transaction is recorded on the blockchain.
In order to create the immutable blocks, a complex series of complicated computations encrypt or lock that data into place. Miners, or those seeking to create a new block, often charge “gas fees” in order to recover the costs of doing so.
However, once these unique traits combine, users are left with a very clear and recorded ownership of an item online. So often, digital assets on the world wide web were stolen, easily used without permission, or hard to track.
With today’s blockchain, artists are able to gain from their works. Owners are able to verify their ownership. Users are able to view an open and transparent transaction record.
The blockchain has created a varied world of new tech that is still rather in its infancy of development and use.
An NFT’s Value
In most cases, the NFT represents a digital file. That file is typically digital art. There are platform entities using the NFT to stand in for anything from an actual piece of real estate to a vehicle in the “real world.”
However, in most cases, you will find that NFTs are typically digital art. These files can be anything from a new music video release as a .mp4 to a badge earned in a video game as a simple .jpg.
NFT traits are unique to the medium they are presented in, but in all cases, there is typically a value assigned to it. This value is concocted using a wide variety of traits. The “rarity trait” is just one part of what makes an NFT have value to others.
Several other NFT trait values can alter the overall worth of an NFT collection. Some of these factors matter more than others, but all can impact what a particular NFT is worth in today’s market.
A Volatile Space
While focusing on rare attributes is one-way investors track the worth of their personal NFT collections, it is smart to remember that the crypto and NFT marketplaces can be a very volatile space, full of change. The drastic lows and crazed highs of any given NFT collection can swing by the minute.
Today’s NFT collection that is worth millions might not total a single penny tomorrow. There is constant change in the NFT space. Something that is a rare NFT today may not be for long. Just remember that things change and any given collection can have a wide range of values assigned to it at any given time.
Supply and Demand
One trait value that many looks at in addition to rarity rank is the supply of an NFT. Rarity can be increased if there are a limited number of NFTs in a collection. Alternatively, if there are many followers dying to get their hands on a particular NFT market (think Bored Ape Yacht Club in its current popularity peak), the NFTs rarity can also be altered.
How many people want to own it versus how many are on the market at present can drastically change an NFT’s rarity rank. Think of your high school economics lessons. The fewer there are available, typically the higher the value.
Another way an overall rarity score can be determined is through the actual art it represents. Some NFT projects include very rare color combinations. Some may base value on a particular accessory or character, while another NFT project might focus on unique facial features.
No matter the variable, the less often it appears means the rarer NFTs are fewer in number. In other words, if a trait seldom appears, it is worth more. In an entire collection of generative art profile images, only one might have blue eyes. Those different traits drive the NFTs price.
The rarer the item, the more it is likely to be worth. Alternatively, some buyers seek special traits and only want collections based on that rare item. One collection might have rare NFTs that only wear hats. Such trait rarities vary by collection, of course. Where one set of apes might all have hats, another set of Cool Cats might only have one in a set of 10,000.
Relating to supply and demand, the value of an NFT is also often driven by the popularity of the collection. The rarest trait in an uninteresting collection can be worthless. Likewise, a rather common, average rarity but in a highly sought-after collection might shoot a value up.
Calculating rarity is tough, and that’s why there is a multitude of tools out there to help you discover rarity ranks. Not all, as is typical in most things, however, are created equally. NFT rankings fluctuate so frequently a rarity score should not be the only thing a collector views in determining an NFT collection’s value.
Reasons to Collect NFTs
Because how popular an NFT collection is can impact its value, it is also helpful to understand the unique reasons buyers collect particular NFTs. Let’s break down a few of the common reasons, which can help to direct you to the best NFT rarity tools for your personal arsenal.
Something a rarity tool can’t accurately measure no matter how well it is designed is the passion factor. Some collectors simply collect for the “love of the game.” Rarity tools cannot detect how much you care about or enjoy an item. That value is unique to you, the owner, and can include rare traits, but doesn’t have to.
An NFT seemingly worthless to one man can be the prized possession of another. As they often say in traditional art forms, beauty is in the eye of the beholder, and given that it is such a subjective topic, interest is often something not measured within a rarity score.
Even the world’s very best NFT rarity tools cannot measure how much entertainment is enjoyed by its owner. While some find beauty in a visual art form, others may collect an NFT despite its rarity score simply because it provides them with entertainment.
From in-game badges to NFTs you can “breed” and create with, there are plenty of features that a rarity tool cannot calculate. Individual NFTs may simply have a high price because they are driven by entertainment sales.
If your favorite band releases its next album only via NFT ownership, chances are those sales are worth a higher price to you than to someone that doesn’t listen to their music. Even the rarest of NFTs can be worthless, however, if there is no intrinsic value (entertainment or otherwise) to its existence.
Artists of all types and using a multitude of mediums, several formulas, and calculators to determine a collection as valuable. There are plenty of factors that go into those choices. While it is not a perfect science, largely due to the number of immeasurable variables, there are tools that do make sense when determining things like a sales price.
Much like those that seek NFTs for the simple value they hold as a piece of art or entertainment, so too do they collect or consider an item valuable simply because it is part of a bigger collection. If your individual token is not rare but is the only one I am missing from my set, it can become far more valuable to me.
Some of that desire is derived from an NFT’s rarity. But sometimes, collecting is done simply for the sake of the collection. Some brands may release new features to try to intrigue buyers. But, others focus on the tried and true go-to collections that fuel the virtual economy.
Perhaps most commonly, and minimally most covered in the mainstream media, NFTs are bought, sold, and collected as a mode to earn money. This investment strategy is often the one that requires careful tools, accurate price points, and the ability to determine the best times to buy and sell.
Much like the art of house flipping, for example, investors want to buy an NFT at its lowest price, then resell it for the highest price they can get. If you get a token at a bargain-basement price, or even strictly by luck of a random drop, you stand to make some money because the transaction you make from there is bound to be profitable.
Alternatively, others carefully scroll the web, constantly reviewing rankings and noting the most valuable traits. To do so, there are a wide variety of tools to make it easier on your research! Let’s break down how they work and what some of the most popular models are today.
Before you can apply a rarity ranking tool, you would need to know what precisely a rarity rank is. Used to often determine the value of a particular NFT, these figures weigh a collection and count the probability or frequency of a given trait.
What Is NFT Rarity?
An NFT’s rarity is a number. It is one of many numbers that are combined to determine the value of a particular NFT. Depending on that rank, an NFT may go up or down in price depending on the traits it displays.
Let’s take a look at the Bored Ape Yacht Club for one example. In this collection, the most unusual trait is called “Trippy Fur.” There are only 83 apes that don such fur, of the 10,000 released in the collections. Because it is the rarest, it is the most valued among ape collections.
Other traits such as a black T-shirt, a cross earring, or even a cowboy hat are also considered rare. A rarity tool would take the total number of apes out there (10,000) and determine how many dons a particular rarity among those on the platform.
To access these rankings, a user often applies tools to understand what others in the marketplace are saying is valuable. Your understanding may be a bit green as you just start out in the space, but by finding access to rarity ranking tools, you can transact with the best of them.
Some tools compare to a Kelley Blue Book. If you’ve ever bought a car, sold a car, or simply wanted to know how much your vehicle was worth, it is likely you’ve heard of the KBB and its handy website. By typing in a few facts about your automobile, the site will spit out an approximate value.
A rarity ranking tool does the same. It seeks to score the rarest traits with the best rankings. It helps you to value your rare NFTs, and find out what they are really worth.
NFT Rarity Tools
Rarity ranks is a complex and detailed subject. Plenty of rarity tools exist in today’s marketplace because there is no set “rule” for determining the value of an NFT.
In its simplest terms, a value of an NFT is best set by what someone is actually willing to pay for it on the actual market. A rarity score isn’t helpful if no one is willing to shell out the actual money to purchase a unique NFT.
However, rarity tools can help even a novice collector to understand fair values and worth. Rarity scores help owners to again compare those proverbial apples and oranges by leveling the playing field.
Your ape might not be worth five of my cats, but we can compare the rarity score of the two items and determine which might have a higher value.
How To Use an NFT Rarity Tool
Depending on the tool you choose, an NFT rarity tool and its abilities can vary slightly. It is wise to select an NFT rarity tool that has a simple interface, that is easy to use and understand. Especially if you are just starting out in the world of NFTs, you don’t want to take a hard dive into a complex and hard-to-understand NFT rarity ranker.
Additionally, you will want to find a tool that is widely accepted and used in the space. If a new NFT rarity ranker comes out with some bizarre rarity score no other tool thinks is correct, chances are this is not a tool to use. NFT Rarity Tools, while varying in approach and ability, should be able to fairly weigh multiple factors and come up with rarity scores that are accepted across the marketplace.
Rarity tools that “tell you what you want to hear” aren’t going to do you much good in the long run. While you might bump up your ego with a false rarity, you are not going to find success if no one agrees with that score.
The Best NFT Rarity Ranking Tool For You
It is also important to remember when picking the proper rarity ranking tool for you that every collector is different. From the aforementioned varied reasons for collecting to the intrinsic value of beauty or entertainment one might hold, there are a wide variety of products on the “toolbox” marketplace.
Take your time and find the tool that best fits your unique needs. Your wallet may contain only a handful of NFTs, but how they are priced varies depending on your purpose.
The best ranking tool for you may not be the best for me. If you only collect NBA Top Shots, you don’t want a CryptoPunk rarity calculator.
Some tools just make more sense. Others may be more compatible with your wallet brand or chosen exchange. No matter the reason, finding a tool that works best for you can be an individual experience.
If you aren’t familiar, too, with the term “whales,” it seems wise to note the meaning in this context. No, we aren’t talking about massive sea mammals swimming through our oceans.
In terms of crypto and NFT platforms, a whale is one that owns a major percentage of value in a given “brand.” For example, if you owned 9,000 of the 10,000 NFTs in a given collection, you would be the whale of that collection.
How fat your wallet is isn’t the only thing a whale is known for in the NFT world. Instead, it can be about how much of an object (or how much value of an object) you have ownership of in any given platform, collection, or space.
For example, it is estimated that these “whales” make up 80 percent of the ownership on the Ethereum network. That means, much like the world’s finances, a very small percentage of people own most of the proceeds.
Top NFT Owners
The names that may don the list as top NFT owners today will certainly not be precisely the same tomorrow. Due to the ever-fluctuating price of NFTs, the volatile market, and a constant, never-sleeping marketplace of trading, the “whales” of the industry are constantly rotating.
You have likely heard some famous names like Snoop Dogg, a rapper in the United States, who amongst other claims to fame has a pretty substantial investment in the NFT industry. Others like Madonna, Eminem, Jay-Z, and even Justin Bieber have gotten into the game as well.
The names will change, but one thing will remain constant: there will always be “whales” in this wild world of exchanges. Understanding they exist is likely more crucial to your trading than knowing the precise names.
Of course, if you want to know that too, FLOLiO provides updated information on its site to keep you informed.
The Top Ranked NFT Rarity Tools
Now, the moment you’ve all been waiting for today. What are some of the big names in NFT Rarity Tools? Let’s break down some of the most popular and widely used products out there today.
- Rarity Sniper – A name you may have heard rather early in your search for such tools is Rarity Sniper. This product features over 700 different collections across networks such as Ethereum. Rarity Sniper also offers a Discord channel for communication amongst its more than 400,000 users, making it an appealing tool for many. Rarity Sniper offers the Rarity Sniper “bot” at its far left, drop-down menu for nearly any NFT in your wallet. Rarity Sniper has an easy interface, making it attractive even for new collectors.
- OpenSea – We would be remiss in naming rarity tools if we didn’t mention the largest and most popular place to buy, sell, and trade NFTs. OpenSea has its own rarity options that consider value based on volume and floor prices. With its wide number of users, many like having the toolbox already housed in the platform they use most.
- Trait Sniper – Fans of Trait Sniper love that it will quickly (typically in under two minutes) rate most any NFT. Additionally, paid versions of the Trait Sniper tool to allow users to receive up-to-the-minute notifications of pricing changes. Those seeking to know precisely when to buy or sell can benefit from such alerts.
- Rarity.tools – Another great tool many rely on in the NFT space is the Rarity.tools application. This popular space offers constantly updated figures to keep you in the know. Filtering options such as average price, total sales volume, owner count, or top collections make this a versatile tool. Additionally, its simple interface attracts new collectors. It is known for its ease of use.
- Rarity Sniffer – If you aim to “sniff” out the value and beat the next guy to the punch, you might opt for the Rarity Sniffer tool. With over 10,000 collections included in its database, this is a great choice if your NFTs vary from collection to collection rather often.
- NFT Stats – If you are seeking a tool to do more than just rarity, you may want to try a site like NFT Stats. There, you can research a multitude of factors about your NFT collection and not just focus on one feature.
- Ehterscan Token Tracker – Known for the popular platform it exists on, this tracking tool is a must-have for those that tend to stay on Ethereum for all of their NFT needs. This space allows the ERC-721 token (the primary feature of Ethereum) to be easily tracked.
- Moby – Not known for its exchange nearly as well as its toolsets, this site may not be where you want to “live” in the NFT game. However, it does have useful tools when it comes to valuing your NFTs. A pro edition will also allow pre-set timers to bring you updates on timeframes you find fitting to your needs. This is another feature great for the “Wolf of Wallstreet” style trader, seeking to make timely flips at the precise moments necessary to make money.
- DappRadar – This tool allows even the newest investor to snipe the best picks with quick and efficient tools. With added abilities such as tracking a particular whale’s actions, you can monitor nearly any collector you choose. Additionally, this asset is considered another great choice for Ethereum users, as it allows for a direct connection to your wallet, and thusly your full NFT catalog.
- HowRare.Is – If Solana is your preferred space of interaction, you might want to tune into the tools offered by HowRare.Is. Called the best calculator for the over 250 collections on Solana, this product not only tracks current NFTs, but also offers a great way to monitor the projected action of upcoming collections.
The Future of the NFT
With such a constantly changing landscape, it is hard to say where the wild and wonderful world of NFTs is headed. One thing is for sure, though. There will always be something new.
To stay on top of such a crazy market, it is wise to stay up to date with new products, upcoming drops, and changes in the rarity rules of thumb.
To keep in the know, it is wise to select a handful of reliable resources. These should be constantly reviewed to keep you up to date on the latest trends.
Things are changing by the second in the world of NFTs, and to stay on top of things, you will need to have an arsenal of “weapons” at the ready.
A Reliable Source
The best place to find the most updated information, reliable data, and statistics that you can trust happens right here on FLOLiO. From the latest trends to hit crypto, to the next hot NFT drop coming near you, you can stay informed with the simple click of a button.
Be sure to stay tuned to FLOLiO’s offerings to know what is happening in the industry at all times.