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Rarity

Rarity has a significant impact on the value of NFTs. Just like traditional collectibles, the fewer there are of a particular NFT, the more valuable it becomes. What makes NFTs so special is that each of them is unique. No copy of a particular NFT exists.

Furthermore, most collections assign random traits to different NFTs. These traits can also have different degrees of rarity. For example, the CryptoPunks collection has a total of 10,000 NFTs in it but only 9 of them have the alien trait.

Scarcity

Scarcity is closely related to rarity but focuses more on the controlled supply of NFTs. In the digital world, creators can issue a finite number of NFTs, ensuring that there is a limited supply. Generally, the lower the number of NFTs in a collection, the more exclusive it will be. This strategy drives demand and increases the individual price of assets.

While older projects like CryptoPunks and BoredApeYachClub had a total supply of 10,000, newer collections are experimenting with lower numbers. Some artists launch NFTs at 8000, 5000 and even as low as 3000 and below. This increased scarcity creates a competitive environment where buyers are willing to pay a premium to secure one of the limited NFTs.

Social Status

NFTs have quickly become a status symbol, especially in the digital and crypto communities. Owning a high-value NFT can signal wealth, influence, or a deep understanding of the emerging digital art world.

Utility

Beyond just being digital art or collectibles, some NFTs offer additional utility. This can include access to exclusive content, participation in special events, or even voting rights within a decentralized autonomous organization (DAO).

Exclusivity

The quality or state of being exclusive.