A tool designed to assess the scarcity of a non-fungible token (NFT) within its collection considers various factors, including trait frequency, the number of attributes, and statistical measures. For example, an NFT possessing a unique combination of rare attributes would receive a higher rarity score than one with common traits.
Such assessments are vital in determining an NFT’s potential market value. Scarcity often drives desirability, and understanding how rare an NFT is can inform both buying and selling decisions. This practice has become increasingly prevalent with the growth of the NFT market, as collectors and investors seek to identify potentially valuable assets. Accurate valuation assists in price discovery and market transparency.
