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How is the Rarity and Value of an NFT Determined?

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How is the rarity and value of an NFT determined?

The value of NFT is dependent on different factors. It may include what the NFT represents, the creator of the project, use cases, the level of demand for the project, and so on. For example, if it is an Art NFT, its rarity level can be determined by the level of demand by collectors, what the art represents, the creator of the art, the number of NFTs released, and much more. The aforementioned determines the value attached to the art NFT. 

Those NFTs that belong to a limited series tend to have more value than those that can easily be gotten in an NFT Marketplace. For instance, Bored Ape Yacht Club NFTs have a limited number of 10,000, increasing their value compared to an NFT project that mints millions of NFTs. The level of scarcity goes a long way to affect how people perceive the value of the NFTs published by a project. 

The people backing an NFT project could also affect the value attached to the NFTs minted. If Bored Ape Yacht Club releases a new line of NFTs, people would attach value to the project because of its brand image.  

There are a lot of tools available that allows people to check the rarity level of NFTs that they want to purchase. Some of these tools are free while others are not. 

Those NFTs that have use cases tend to be valuable. For instance, an NFT project like Axie Infinity has attached value to Axies, which are NFTs used in the play to earn platform. The utility of Axies has driven up the demand and value. Gaming NFTs have value based on the demand for their in-game assets. 

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Rose Nnamdi is a crypto content writer that loves drafting content on cryptocurrencies and innovative platforms building on blockchain technology.

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