Smart Ranking Standard: The Complex World of Rarity Ranking in NFTs: An Overview and a Solution from GINOA

We previously published our view on the correct and healthy evaluation of NFTs. Now let’s tackle the question of rarity ranking.

The world of Non-Fungible Tokens (NFTs) is a rapidly evolving one, and so are the standards for evaluating the rarity of these unique digital assets. NFT ranking systems aim to measure the rarity of an NFT in a particular collection, with the assumption that NFTs with rarer attributes are likely to have a higher ranking and thus, more value. However, the existing NFT ranking standards have some limitations that make it difficult for investors to make informed decisions when buying NFTs.

However, the current ranking systems such as Rarity Sniper often provide an incomplete and unrealistic picture of an NFT’s true rarity, value, and expected price. This leaves NFT investors who rely on these rankings at a disadvantage, leading many to abandon this strategy altogether.

That’s why at Ginoa, we are revolutionizing the way NFTs are ranked by introducing a smart ranking standard that takes into account multiple factors, including an NFT’s traits, its historical price fluctuations, the supply and demand balance, and consumer perception.

Here are the three main points that must be considered to determine an NFT’s true rarity:

1) Quantity Alone Does Not Equal Rarity

The number of traits in a collection is not the only factor that determines rarity. For example, in the CryptoPunks collection, the 9 Alien punks are considered more valuable than the 8 “0 Attribute” CryptoPunks, despite being more numerous. This is because the “Type” category is a superior attribute.

2) Price History Matters

An NFT’s historical prices also play a crucial role in determining its rarity. For instance, in the Bored Ape Yacht Club collection, the ranking of the highest-priced NFTs may not reflect their actual rarity, as some of the most in-demand categories such as Solid Gold and Trippy features may not be accurately reflected in the ranking.

Example 1: Let’s illustrate the rarity classification of three out of the five highest-priced NFTs in the Bored Ape Yacht Club collection history. According to the market rarity standards, here are the rankings of Ape #232, #5383, and #8585.

What this fails to show is Solid Gold and Trippy are among the most popular categories. Thus choosing your Ape using these metrics will likely won’t result in a profitable and logical investment.

Example 2: Now let’s look at Meebits.

There are only 57 Skeleton-body NFTs out of 20,000 NFTs in the collection. Here, the most prominent attribute affecting price is “Type.”

The sales history shows Skeleton sales making up the highest 1% of all Meebits sales. Existing rarity platforms do not reflect that. The ranking of the Skeleton-body NFTs reaches up to 500 while the prices are in the top 1%.

However, these “rarest” Meebits have failed to reach the prices of lower-ranked Skeletons.

3) Rankings Can Change Over Time

The rarity of an NFT can also change over time, as consumer sentiment, perception, and the market’s level of interest can impact an NFT’s price and ranking. This can be seen with the “Hoodie” attributed Punk NFTs in the CryptoPunks collection, where their ranking changed as they became one of the most desirable traits. This might even arise from a CryptoPunk influencer gaining popularity, as people also build brands around their characters.

This is why there is a need for a new standard!

Additionally, it’s important to note that NFTs are not only valuable based on their rarity, but also the uniqueness of their design, the reputation of the artist, harmony of traits, consumer perception, historical price fluctuation, and the overall demand in the market. Our AI algorithm takes into account all of these factors to create a comprehensive NFT ranking that truly reflects the value of an NFT.

Furthermore, the concept of Dynamic NFTs brings new challenges to the NFT ranking and valuation space. With the ability to change the appearance or features of an NFT, it can be difficult to determine its rarity and value. However, our AI infrastructure is equipped to handle these complexities and is constantly monitoring the market to ensure our NFT rankings are always accurate and up-to-date.

For example, Doodles 2 allows for a character to change its attire, changing the NFT itself. We individually calculate each collection considering what is unique about it, instead of applying the same rules to every single collection.

At Ginoa, we believe in creating a transparent and accessible platform for NFT buyers and sellers. Our NFT valuation and ranking services are free for everyone to use, and we aim to provide trustworthy data that can help our users make informed decisions when trading NFTs.

Thanks for supporting Ginoa!
We are launching on February 24th. 🚀
Join the Waitlist on ginoa.io to get access to free ranking data.

Website | Blog | Twitter | Discord | Telegram | LinkedIn

For all other inquiries, email us at partners@ginoa.io

We cannot wait to show you what else we have in store. 👀