Collectors understand that if a collectible is extremely rare then it will be more valuable. But do NFT collectors take rarity into account when buying into a project? This is a valid question that we will be exploring in this blog post. We will start by defining what NFT rarity means, why it’s important and how rarity can impact the value of an NFT collection. Let’s get started!
What is rarity?
Rarity means the state or quality of being rare. Something that is not found in large numbers and is consequently of interest or value. NFT rarity is determined by a number of factors, the most important of which is the total supply of that NFT and the NFT traits. The higher the total supply or common trait, the more common the NFT. Other factors that can affect an NFT’s rarity include its age, how popular it is, and whether or not it is a special edition or limited edition NFT.
Why is rarity important?
NFTs that are rare are usually more valuable than common NFTs. This is because rarity adds to the desirability of an NFT, which in turn drives up its price. In addition to market conditions, the rarity of an NFT is also important when determining its expected worth. If you believe an NFT will increase in popularity in the future, then the NFT scarcity will add to that value. The idea of owning something extremely rare and valuable is not unique to NFTs. For example, one of the 10 Rarest Collectibles to Ever Exist is Wutang Clan’s, “Once Upon A Time In Shaolin”. This is considered one of the most valuable collectibles ever created. This secret album was sold for $2 million to the infamous Pharma Bro Martin Shkreli who would later end up in federal prison and have the album seized. The album sold for so much because one of the most popular hip hop groups of all time created it as a one of one extremely rare collectible.
How do NFT traits affect rarity?
An NFT’s final image is formed by layering each trait on top of one another. Trait groups are categories of traits, while sub-traits are the design components that are utilized. A successful NFT traits strategy employs trait groups, sub-traits, and various special traits. Very common traits do not always have to be rare; however, demand for them may outpace supply.
Why should you consider rarity when buying into a project.
In the world of marketing, NFTs offer a unique opportunity to create collectibles that are both highly coveted and one-of-a-kind. By a project implementing NFT rarity traits into their marketing strategy, they can ensure that their products are both desirable and rare. These two factors can drive up demand and help you to command a higher price on resale.
NFT rarity can also help to create a sense of urgency and excitement around the project. If buyers know that they may never have another chance to purchase a particular item, they are more likely to act quickly. This can be an effective way to boost sales and encourage them to buy now.
Finally, NFT rarity can add value to your overall collection. If you have a rare item, it can be worth more than other items in the collection. This can make your collection more valuable as a whole and give you a competitive edge. If you’re a creator looking for a unique way to market your NFT project and want help creating an awareness campaign, be sure to check out our Advertising Page. Our team of collectors can help you create a marketing strategy that will set your project apart from the competition. Sign up for a call with NettyArt today and let us show you how we can help!
-Pablo Segarra, Esq. Head of Client Relations