As a fledgling or avid NFT collector on Cardano, it is super important to research the CNFT ranking for pieces you’re interested in before you part with your ADA.
So, how do you do that?
Well, you check the rarity ranking, scope out the market, and review sales data to help inform your investment decisions.
And, where do you check that?
Luckily, there are great CNFT ranking tools available that allow you to do just that and in this article we’ll share a couple of those tools to add to your investment arsenal.
Does rarity ranking matter? The short answer is, yes.
However, while it is true that the rarest NFTs are often worth much more than common ones, there are other factors to consider as well.
Many people purchase NFTs for their personal use rather than to flip — some buy NFTs because of their visual appeal, such as for their profile picture. It is for this reason that NFTs with more popular or prettier traits may sometimes be valued higher by the market than those with rarer traits.
As rarity scores and rankings have their limits, you need to exercise your own judgment when determining the value of an NFT. The value of an NFT can be influenced by a variety of factors, but if you know what to look for, you'll be able to make better investments.
In general, however, the rarer an NFT is, the more you can sell it for. Here are some tips for maximizing profits from rarity if you're in it to flip it.
Cardano CNFT ranking tools help you understand the rarity and other metrics of your non-fungible token (NFT) when compared to all others of the same type. They also give you other meaningful information that will help you determine if you should add the piece to your collection, or not.
The reason that there are tools to help rank CNFTs is because there are so many projects with big collections to scour, and, without a rarity-meter, market analytics, and sales data, it would be near impossible to know what is valuable and what is less so.
One of the ways that collectors can assess a potential buy is through the CNFT’s rarity ranking.
The way that CNFT rankings calculate scarcity is through the NFT’s traits. Traits are the attributes of the NFT. They can be things like an avatar’s face, its background, accessories it may include, its eyes, and so on.
These traits are compared with all the other traits of similar NFTs. If something is common in the project, it will have a high percentage shared across the collection. If something is rare, it will have a much lower percentage.
CNFT rarity can be calculated using this formula:
[Rarity Score for a Trait Value] = 1 / ([Number of Items with that Trait Value] / [Total Number of Items in Collection])
Now, do this for every trait of the NFT, add it up, and you have the total Rarity Score for the NFT.
For example, let's take the color pink in a collection of 100 pieces. Let’s assume it is rare in the collection, and only 2 NFTs possess this trait. We can calculate the trait rarity value of the individual items by dividing the total number of NFTs in the project by the number of NFTs that have the rare trait.
So, it looks like this:
1/(100/2), which equals 0.02%.
We say the rarity of items with pink in this collection is 0.02 percent of the total collection. This makes it super rare, and will add to the rarity ranking of the NFT in the project.
Thankfully, CNFT ranking tools do the math automatically.
As a collector, the rarity rank is a great indicator of value. It helps you know if the NFT is a worthwhile investment. Likewise, it will inform your decision to keep, or sell, your NFT.
It is worth noting that high scarcity does not always equate to high value.
For example, a CNFT project that is a bit of an outlier on face-value might still have listings within its collection that have a rarity factor. However, this does not necessarily translate into a high desirability value. For this reason, it is important to not only factor in scarcity in your decision-making, but to include other metrics, such as sales data, and market analytics.
To do this well, we have a mix of CNFT ranking tools and platforms that will help you in your quest to make good investments.
Three CNFT ranking tools worth exploring:
CNFT Tools is a great tool when it comes to understanding scarcity and rankings. It sorts projects by rarity by default. You just have to select a project and it will then sort the art within the NFT project by rarity.
The first NFT artwork listed will be the most rare within the project.
For example, we’ve selected the Mallard Order.
When you select the CNFT project, you’ll see all the listings within the project. From this dashboard, you can even do a direct serial number lookup, set a minimum and maximum price filter, as well as select what traits you’d like to filter by.
In the screenshot, the most rare piece (#1) is this sleepy little Zoro-like duck with the blood moon in the background.
He’s worth 1,075,300 ADA - which translates to about $569235,86 at today’s value!
If you click the blue button with the ADA price on it, you will be sent to the NFT marketplace where the piece is minted.
When you click the image a side panel opens where you can see the traits of the selected piece.
So, while there are many NFTs with skin attributes set to none (98.74%), there are very few with a purple fedora on their heads (0.02%). Similarly, NFTs that don a perfectly purple peacoat are pretty rare (0.02%).
For this reason, the culmination of these scarcity values tallies the total scarcity of the piece in the CNFT project.
And this, in turn, makes it the most rare NFT listing of The Mallard Order project.
But, does that mean it is a valuable investment worth adding to your NFT collection?
OpenCNFT is another brilliant ranking tool for CNFTs. It automatically ranks CNFT projects by liquidity trends, shows biggest volume gainers within the last 24 hours, and highlights top selling CNFTs within the last day.
The default dashboard layout sorts NFT projects by volume. The higher the ADA volume, the higher the project will rank.
The real power of OpenCNFT for NFT collectors is that it allows you to analyze projects in detail.
Making data-driven decisions is always better than just going on your gut.
So, when you click on a project, for example, Cornucopias NFT2Tree Douglas Fir 2022, you land on a dashboard that shows you in-depth analytics about the project.
OpenCNFT shows price action, average price, ADA volume, total sales, floor price, wallet holder stats, trade history, and NFT rarity rankings.
This data will help you know if the NFT is a good investment - even more so than just rarity metrics.
For instance, understanding wallet holder stats is useful because when there are many and diverse wallet holders, the project and pricing is considerably more stable than if there are only a few wallet holders who might be manipulating the price.
As with CNFT.Tools, when you select the 'NFT' tab and click on a listing you will see the full details of the artwork.
This includes data such as highest and lowest price, total trades, minted date, and the NFT marketplace on which it was minted.
This CNFT ranking platform also shows all the unique traits of the CNFT, and indicates the rarity rank of the NFT.
Combining all of this data with rarity ranking gives you a much clearer view of how to invest.
CNFT Jungle is an ideal CNFT ranking tool if you want to know all about rarity, stats, and sales of Cardano NFTs.
This ranking tool gives insightful CNFT project analytics, as well as market statistics to help CNFT collectors make data-driven decisions.
This is an amazing graphic visualization platform that turns boring numbers into awesome graphs. At a glance you get an immediate overview of marketplace volume, collections volume, top sales in the last 24 hours, and collections total worth.
Plus, these graphs are interactive, which means if you click on a metric or collection, it will direct you to the CNFT project or collection immediately.
Their upcoming Cardano NFT Project Calendar gives you early access to potentially lucrative NFTs that may be worth investing in.
CNFT Jungle also has NFT Sniping tools for collectors who want a bit of an advantage. Collectors can be notified of new NFT listings of a specific asset, or that fall within a certain price and / or rarity range, for a certain area (regex), that have specific traits, or have various combinations of these.
Check out these CNFT drop calendar sites to be in the know for upcoming drops.
With so many CNFT projects in the market, it can be a daunting task to know your Mallard from your Dead Rabbits. So, for Cardano NFT collectors who want to be guided by data, and make their investments a sure thing, you need to do your research.
Thankfully, there are many useful CNFT ranking tools available to guide your decision-making, and safeguard your ADA.
Here’s to prosperous investments and vibrant collections.