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NFT Rarity Distributions

underground - 12/6/2022

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Whether you've held a NFT until reveal or looking to buy post-reveal on secondary, understanding the value of rare NFTs in a collection is crucial as an investment thesis.

NFTs are assigned rarity ranks determined by a combination of traits.

Collections often have a limited number of 1-of-1 NFTs, followed by a small number of highly sought after “rare” traits.

Just because your rarity rank is bad it doesn't necessarily mean your NFT is valued at the floor. Your rank determines how common or uncommon your NFT is, but does not tell you the demand of your traits.

For example, take a look at these few Moonbirds sales a few weeks ago.

A rank 3,300 Moonbird sold for 10.45e, while a rank 6,500 Moonbird sold for 13e through an offer.

This is because token #7149 has the grail headwear trait. The trophy atop the Moonbirds head has always been a sought after trait, but became even more valuable after the team announced the ability to mint Grails Part II if you had a Moonbird with the grail trait.

While “grail” trait Moonbirds commanded a premium due to their utility, CloneX is a great example of a collection that has low rank NFTs that go well over floor.

With nearly 3,000 out of the 19,400 CloneX’s having Murakami Drip, this actually makes it the most common trait in the collection. Despite being the most common trait in the collection, Murakami Drip sells for more than a 4e premium!

All this being said, a collection in itself must have strong secondary demand for low rank NFTs and rare traits to be desirable. Make sure to pay attention to the demand for all your traits so you don’t underprice your NFT! Have you sniped a rare NFT? Tag us on Twitter with your biggest win.

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