TL;DR- Rarity.Tools has an excellent scoring system for NFT rarity when you’re looking at NFT projects. The rarer the NFT you buy/hold is, the more likely it is to retain and increase its value. However, rarity.tools is only one NFT rarity tool. There are several other great tools we’ll go over that determine NFT rarity!
Why use rarity tools when buying NFTs?
Because rarity tools give you a massive advantage over regular investors.
NFT rarity tools give you rarity rank and key insights into the intrinsic value of NFTs you browse. Over time, NFTs with more rare traits and a lower NFT rarity ranking tend to hold or increase their value better than their less-rare counterparts.
If you’re using an NFT rarity tool correctly, the use of the tool can make you some serious cash in the NFT space.
If you’re not using one of these tools already to get NFT rarity calculated, you need to be.
Trying to profit in cryptocurrency can be painfully slow. The NFT space has been heating up and still has a long way to go to make it to the mainstream. This is good!
So why are NFT insiders using rarity tools to guide them in their investments? It’s simple.
The rarer the traits an NFT has, the higher price you can get for it when you sell. NFT traits are the name of the game. Rarity tools help you find the NFT rarity, often by giving you a rarity rank and/or a rarity score.
But first, you’ve got to find that rare NFT on the cheap. How is this even possible?
Why rarity tools work
NFT markets are highly inefficient. This means that price and value often do not correlate. Price is what you pay; value is what you get.
As Warren Buffett said, “whether it’s socks or stocks, I like to buy things on sale” – the same is true for NFTs. Get it on sale and you’ve got a fighting chance to make a profit.
It’s not rocket science
Below I have a method for taking the relative NFT rarity of an NFT in the collection and comparing that to the average price of the collection to see if you’re getting value. For a step-by-step on how to find an NFT rarity score, use the ‘Jump to Section’ to navigate to How to look up the rarity of an NFT you’re looking to buy.
What is NFT rarity?
“WTF is NFT rarity?” you might ask. It’s how scarce an item is relative to other items in the NFT collection. The things that make the NFT item scarce are its traits, or if we’re talking rarity score then the combination of traits.
If an item has a lot of rare traits- you’ve got a rare NFT.
Rarity tools assign a rarity score or rarity rank by either giving an item a ranking within the collection or assigning a raw rarity score or (most of the time) both. For instance, Rarity.Tools calculates rarity scores by dividing 1 by scarcity factors. Not only does the tool evaluate just the rarest trait, but takes all the traits together.
Why does NFT rarity make something more valuable?
It’s basic supply and demand dynamics. Even if there’s a small demand for something rare, that thing is valuable.
Think about diamonds, Charizard Pokemon cards, and limited edition Ferraris- people want them, and they’re rare. Voila! They’re really valuable. People pay insane sums for these items.
We’re here to capitalize on that insanity.
Before we get started, a warning: the vast majority of NFT collections out there will end up worthless (and I do mean zero). This is because the supply of NFT collections greatly outstrips demand. After all, NFTs are still a very niche space.
Common rarity tool features
Most rarity tools offer common functionality that helps seasoned NFT investors in their endless search for low prices and high value. They are as follows:
You probably have a good idea of how much you’re looking to invest in NFTs. You use price filters on these rarity tools to help you find NFTs within your price range. If you can’t afford it, looking at it is going to be a waste of time.
Rarity ranking & NFT rarity
You use NFT rarity as a key metric to find relative value. This ranks all NFTs in the collection from 1 to N, with 1 being the rarest and N (often 10,000) the least rare item. NFT rarity rankings are simple. If you see an item with a better rank than other items but with a far lower price, you have a winner!
This is if you’re checking the value of a very specific NFT item. I use this on items I already own to get an idea of what I can sell them for.
You use this to filter for the NFT blockchain, the most common being Ethereum vs. Polygon. Many other blockchains have NFTs (Cardano, Avalanche, Klatyn, etc.) but 98%+ of collections are going to be on either Ethereum or Polygon.
Not a feature, but it’s something you’ll need. Is the NFT collection you want even listed on the rarity tool? Not all tools cover all collections. Some tools are better than others for coverage.
Either way, you’ll want an accurate NFT rarity tracker. RT, Rarity Sniffer and Rarity Sniper are all great.
Below is how RT can calculate NFT rarity (the NFT rarity score).
These scores are added together for each of the traits that an NFT possesses
Are you looking to make 50x or 100x on your next NFT?
With thousands of NFT collections all over the place, it’s going to be harder than you think. I’ll let you in on a disturbing truth: only a few percent of these collections are actually going to survive. You’ll completely lose your money in the rest. You’ve got to do some heavy research before aping into some JPEGs.
The good news is that most of the projects at or near the top of OpenSea’s ranking are stable and will have longevity. The other good news is that there are criteria (like NFT traits) you can use to evaluate a project. Using Rarity.Tools works for a couple of these criteria. First, I want to go over the measuring stick you should be using to evaluate NFT collections as a whole.
Five criteria to use when evaluating an NFT collection
1) Art: How many immutable traits are there? This is where rarity.tools comes into play. Collections need to be able to produce specifically scarce features. Most NFT collections have randomly generated traits, just like rolling dice on a table. There need to be rare items in the collection. Rarity.tools ranks each of the NFTs in the collection to check the rarity. We’ll go over the process of getting that rank below.
2) Founding Team: The more well known they are, the better. A good example is Gary Vaynerchuk’s VeeFriends. Gary is a big celebrity in the business space and it’s likely his NFT collection will have staying power. Ozzy Osbourne has bat NFTs- and several high profile celebrities like Snoop Dogg have CyberPunks. Other examples of famous founders of NFT collections include the NFL’s Rob Gronkowski and Elon Musk. These people aren’t in the NFT space because they’re trying to make money (they already have plenty), they’re here because they like it.
3) Community: Check out the Twitter pages, Discords, or Telegrams or the project. Are there a lot of followers? Is there a lot of activity? The more, the better. You can check these figures by typing in the collection name in the search bar on the top right. On the collection home page you’ll see links for the website, Twitter, Discord, and Instagram. Check out the pages- does it look like the following is strong relative to other collections?
4) Road Map: Projects that have events and drops coming up in the future and are more active are better. For example- Bored Ape Yacht Club NFT holders were airdropped Mutant Apes for free, which they could turn around and sell for tens of thousands. Another example is the Wall St Bulls collection, which dropped bull owners ‘Wall St Interns’, which have become valuable. Plus, this can be a way for you to get in on newer NFT drops when they’re minted. Make sure the project has a team that’s future-conscious and works hard to make things enjoyable for NFT holders in the community.
5) Trading Metrics: For a full explanation of this see my article on spotting good NFT collections on OpenSea. The idea here is that you want a lot of owners relative to the amount of assets, and a high amount of trading volume.
*A higher number of owners can also be good. Watch out for collections that have tons of assets but very few owners.
How to look up the rarity of an NFT you’re looking to buy with Rarity.Tools
I will be using a specific NFT from the Mutant Ape Yacht Club collection as an example today.
Find an NFT to calculate a rarity score
1. First, go to OpenSea.io and find the collection and NFT that you’re looking for. Make sure and click on the page of the exact NFT you’re evaluating. Look for the blue checkmark to make sure the collection you’re looking at is the real one. Unfortunately, there are several knock-off collections floating around OpenSea.
Lookup the item on RT
2. Open another browser tab and go to Rarity.Tools.In the search bar in the top left, begin to type the name of the NFT collection you’re looking for. To the left of the collection name, you’ll see the OpenSea ranking by volume.
The Ethereum figure underneath the collection name is the seven-day trading volume. Remember from our criteria above- the more volume, the better. Select the collection you’re looking for when it appears in the drop-down menu. Did it not appear? Check your spelling- but if it still isn’t there the collection may not be big enough to be tracked on Rarity.Tools yet. The RT team is working to expand the collections on the site, but for now, it’s bigger collections ($$).
Lookup by token ID
3. To check the rarity score of a specific NFT: On the OpenSea page, look at the menu underneath the NFT picture. Click the down arrow next to details. The second item you see listed will be the token ID. Hover over the token ID until you see the copy command pop up- then click the token ID. Now you have that ID saved to your clipboard.
4. On the Rarity.Tools homepage of the NFT collection you’re looking at, click into the ID lookup search bar in the top left. Paste the token ID you copied from OpenSea. Click lookup immediately to the left of the search bar.
5. The Rarity Score box will pop up giving you the data for this specific NFT. The visual below shows you what to pay attention to.
A few things to pay attention to
- The overall rank of the NFT out of all NFTs in the collection (i.e. 510/2000)
- The specific traits of the NFT that add the most to the total NFT score (these are listed from most rare at the top to least rare at the bottom)
- The overall rarity score of the NFT
- Any trait that boosts the score significantly
Do a quick test
6. Something I like to do is the average price test vs. the NFT’s rarity. Here’s what to do:
- Find the average asking price of an NFT in the collection. This can be done by hitting the activity tab on the collection’s homepage on OpenSea (picture below). I usually filter the date range for the last 7, 14, and 30 days.
- Find the overall rarity rank of the NFT in the collection and divide it by the total # of NFTs in the collection.
- Is it in the top half for rarity? top 25%? Compare this to the average sale price of items in the collection.
- If the rarity puts it in the top half of the collection, but the sale price of the NFT is below the average, It’s possible you’re looking at an undervalued NFT relative to the rest of the collection.
In the case of Mutant Ape #1079 (shown above), it looks like its in the bottom half of rarity but its asking price is above the 30-day average. To me this looks like a bad deal. Just an opinion!
This is the power of rarity.tools– finding things that are rare but have cheaper asking prices. It’s tough and a lot of your searching will be fruitless- but it’s a method you can add to the madness. Not financial advice, of course!
Rarity.Tools also has an upcoming releases calendar you can check out to see if you can beat others to the punch on some hot new collections. Again- be careful, most of these will fail. Apply the 5 criteria above to see if the collection might be worth anything. A lot of the real money made in NFTs is at the mint if you get the right project.
OpenSea ‘Properties’ tool
Another powerful tool to check out while you’re using rarity.tools is the ‘properties’ tool below the NFTs on OpenSea. The box will show you which traits the NFT has and exactly how rare each of those traits are. Look for anything lower than 1% to find something truly rare.
From an investing standpoint, what you’re trying to do here is find NFTs that are underpriced relative to others in the same collection. This means they will have a high rarity score but a relatively low price on OpenSea. This may seem like a daunting task, but the NFT market is wrought with inefficiencies- thus you may have a damn good chance of getting a bargain with a little research.
A common piece of advice from NFT experts is that you should try and bid on the price of an NFT instead of buying it outright. This may involve putting several bids out on NFTs and only having one or two go through.
The two other best NFT rarity tools: Rarity Sniffer and Rarity Sniper
There are only four letters of difference between Rarity Sniffer and Rarity Sniper- which is appropriate given the two tools offer similar functionality. Rarity Sniper is free. Rarity Sniper makes it easy to check NFT rarity. Rarity Sniper works by first choosing the collection you want to explore by entering the information into the search bar to the right. Then you’re able to set all the filters on Rarity Sniper you’d like.
RS’ side panel is great
The way Rarity Sniper presents traits on the right side menu is particularly useful. Rarity Sniper allows you to search for specific traits and see their occurrence in the collection. Below I filtered the headgear feature on Lazy Lions NFTs for ‘Wizard Hat’ and the tool displayed all items that have this trait ranked by rarity, starting with the rarest trait first on the toolbar.
If you care about which traits your NFT has, this is super useful. Believe it or not, not all of us are in NFTs to just make money. It helps if you actually like the NFT you’re buying!
Rarity Sniper tools win the award for best user interface/user experience (UI/UX). Being a product manager working in tech, I can appreciate a great UX when I see one. Rarity Sniper does a good job of keeping up to date with newer NFT projects and NFT drops.
Rarity Sniffer does have the nifty little “View on OpenSea” on the bottom of each NFT listed which links directly to that NFT. Rarity Sniffer also has a ‘Latest’ button on the top navbar that can help you catch big NFT collections early.
Rarity Sniffer’s other main advantage is that it appears to rank collections more quickly. Rarity Sniffer also has the upcoming feature that quickly lists newer collections. You can filter these projects for polygon too.
Rarity Sniffer also has nice filtering options on their NFT viewer including results per page, price filtering, and display of the contract address for that NFT collection. The rarity rank filter is especially good if you’re looking to find the best NFT within a specific price range. Let’s say you’re looking to spend around 1 ETH on an NFT- you could filter and find the rarest NFT for that amount.
Are paid rarity tools worth it?
Tools like RankNFT.io make you pay an expensive monthly subscription fee. The added utility of this tool is that it has a browser plugin where you can go directly to OpenSea.io and browse collections and see rarity in the top right corner of the NFT.
Want to save money? Don’t bother with paid rarity tools. The same functionality can be achieved by keeping multiple tabs open on your browser/phone and checking NFTs based on their ID numbers with the tools listed above.
The rarity of an NFT can definitely be calculated without using a paid tool.
Many of these tools are doing the same thing and have the same features, although they may calculate rarity scores and rarity rank within the collection differently.
The important thing isn’t which tool you use, it’s that you use a tool, check NFT rarity and value rarity versus actual price.
This evaluation process will help your NFTs hold or increase their value. It will give you a massive advantage over NFT investors who aren’t doing the same (and most of them are not doing this!)
Cryptocurrency investing is largely just looking at projects. With NFT investing, you get to look at all the variances within a collection. The experience can be fun and enriching (personally and financially).
As always- stay safe on your investing journey, and think long and hard before making any type of investment into NFT projects. It’s a jungle out there- and remember not to stress too much and have fun and learn as much as you can!