Blog category 1 What Makes NFTs Valuable? Unpacking Rarity, Utility, and Community
MetaVanguard
19/06/2025 category 1

What Makes NFTs Valuable? Unpacking Rarity, Utility, and Community

NFTs (non-fungible tokens) have become a true phenomenon in the world of digital art and collectibles. But what exactly gives them value? In this article, we’ll examine three key aspects: rarity, utility, and community.

Rarity

Rarity is one of the main reasons NFTs are valuable. It’s about uniqueness and scarcity. Each NFT represents a unique digital asset that cannot be replaced by another token. This makes them similar to physical collectibles like paintings or rare coins. CoinDesk emphasizes that the uniqueness of an NFT creates demand, which in turn increases its value.

Limited Quantity

Creators and artists can release limited NFT series, adding a sense of exclusivity. For example, if an artist issues only 10 copies of their work as NFTs, this creates demand and boosts the value of each token. Decrypt also notes that a limited number of tokens can significantly increase their market value.

NFT scarcity makes ownership of such assets even more attractive. Blockchain technology is thriving, and investors are using it to grow their capital.

In some collections, specific token numbers (e.g., #1, #69, #420) may be considered more rare and valuable due to associations or cultural symbolism.

NFTs released as part of special events, collaborations, or anniversaries may also be more rare and valuable—especially if they were available only for a limited time.

How Rarity Is Assessed:

  1. Ranking systems – Platforms and tools analyze NFT attributes within a collection and assign rarity scores.
  2. Statistical analysis – Evaluating how frequently certain traits appear in a collection and identifying NFTs with the rarest combinations.
  3. Community perception and demand – The community’s perception of rarity and demand for specific NFTs also play an important role in determining value.

NFT Utility

The value of NFTs goes beyond collectibility—they can also serve practical functions. For example, NFTs can grant access to exclusive content, events, or even voting rights within certain projects. This makes them more appealing to buyers who are looking for more than just a digital item. The utility of NFTs can significantly boost their market value.

Owning an NFT can also be a real way to earn profit in the future.

NFTs can be used to create digital identities, allowing users to verify their identities securely in online environments—another example of their utility.

Holders of specific NFTs can gain VIP access to content, services, or communities.

NFTs can also be used to store and verify important documents such as diplomas, certificates, or medical records. They can help fight counterfeiting, especially in industries like fashion or luxury goods.

The utility of NFTs continues to expand, covering an increasing number of use cases. Although the market is still in its early stages, it has immense potential to transform various industries and create new opportunities for creators, consumers, and investors. It’s important to understand that not all NFTs have real value, and buyers should carefully research the project and its team before making a purchase.

Integration With Other Platforms

NFTs can be integrated into various ecosystems such as games or social networks. This allows users to use their tokens in different contexts, which increases their value. For example, NFTs earned in a game can be used to enhance characters or unlock unique items. CoinDesk also discusses how such integration can create additional opportunities for NFT holders.

NFTs can represent unique items, characters, skins, lands, and other assets in games. Players can own these assets, trade them, and use them across different games that support the same NFT standard.

Example: Games where rare NFT characters give players advantages or NFT lands allow them to earn cryptocurrency.

Metaverses: NFTs are used to represent virtual real estate, artworks, avatars, and other assets in metaverse platforms. This provides ownership rights and monetization opportunities for virtual assets.

Example: Decentraland or The Sandbox, where users own virtual land in the form of NFTs and can build content on it.

Social Networks

Users can use their NFTs as avatars or as a way to verify profile authenticity.

Example: Twitter allows Twitter Blue subscribers to set NFTs as profile pictures, displaying ownership and verifying authenticity.

Owning specific NFTs can grant access to private groups, events, or content.

Example: Owning an NFT from a musician grants access to a private Discord server where fans can chat with the artist and each other.

Creators can tokenize their content (photos, videos, music) as NFTs and sell it directly to their followers.

Example: Platforms that allow musicians to release songs as NFTs that fans can buy to support their favorite artists.

E-Commerce and Retail

Brands can use NFTs to verify the authenticity of products, especially luxury goods.

Example: An NFT linked to an expensive watch confirms its authenticity and serves as a digital passport.

NFTs can function as digital membership cards, giving access to discounts, exclusive offers, and other benefits.

Example: Owning an NFT from a clothing store grants a discount on all purchases.

Virtual goods and merchandise: Brands can release virtual versions of their products as NFTs for use in metaverses or games.

Example: NFT sneakers that can be worn in the virtual world.

The integration of NFTs with other platforms has immense potential for creating new and innovative ways to interact with digital assets and content. This opens new doors for creators, brands, and users alike.

Engagement and Support

Community plays a crucial role in determining the value of NFTs. Supporters of artists and projects help generate demand. The more people are interested in a specific NFT or project, the higher its value becomes.

Investing in NFTs can also be a gateway to elite communities.

Many NFT projects form communities that are accessible only to holders of specific tokens from the collection. It's like a digital ticket to an exclusive club.

These communities are often hosted on platforms like Discord, where members can chat, share ideas, receive exclusive updates, and take part in various events.

Membership Benefits:

  1. Exclusive content – Access to content not available to the general public, such as early announcements, behind-the-scenes materials, educational courses, and special events.
  2. Influence over project development – NFT holders may participate in votes and discussions that determine the project's, collection’s, or even a metaverse’s future.
  3. Networking with like-minded individuals – An opportunity to connect with people who share your interests and values. NFT communities often include experts, investors, and even celebrities.
  4. Unique opportunities and privileges – Airdrops of new NFTs, discounts on products and services, invitations to exclusive virtual and real-life events.

Why This Creates “Eliteness”:

  1. Limited supply – NFT collections typically have a fixed supply, creating scarcity and increasing the prestige of ownership.
  2. High entry threshold – Prices of popular NFTs can be very high, which naturally filters out those unwilling to make a significant investment.
  3. Shared interests and values – Communities form around specific ideas, art, games, or brands. This attracts like-minded individuals, creating a more cohesive and engaging environment.

Examples:

  • Bored Ape Yacht Club (BAYC) – One of the most well-known examples. Owning an “ape” from this collection grants access to a private Discord server, exclusive events, and collaborations. Many celebrities are members of the club.

Culture and Identity

NFTs can also serve as symbols of belonging to a particular culture or community. For example, NFT holders may feel like part of a digital tribe, which adds emotional value to their assets.

Digital Collectibles and Their Main Benefits

Each NFT is a unique digital asset, which makes it rare. This creates value for collectors who seek exclusive items. The main benefits include:

  1. Proof of ownership – Thanks to blockchain technology, NFT owners can easily verify ownership and authenticity, eliminating counterfeiting.
  2. Investment potential – NFTs can be treated as investment assets. Some collectors and investors view them as opportunities for long-term value appreciation.
  3. Support for artists and creators – NFT art enables creators to earn directly from their work without intermediaries, fostering the growth of the creative economy.

These advantages make NFTs appealing to many collectors. Digital collectibles are a genuinely profitable asset.