NFT Trading Metrics #2: Collection Size
This is a short series of posts to explain ways to evaluate and compare NFT Collections for the purposes of making informed decisions about buying and selling NFTs. Collection Size: When comparing NFT Collections, the SIZE of the Collection is one Indicator that can be used when comparing several different NFT Collections. Principle: The smaller the collection size, the rarer it is, and consequently the more "intrinsically valuable it is," compared to larger collections. Example: Here's a list of Collection Sizes for the Freedom NFT Collections: (1) Rich Birds: 325 NFTs in the Collection (2) Silver Eagles: 553 NFTs in the Collection (3) Free Birds: 693 NFTs in the Collection (4) Freedom Eagles: 3,448 NFTs in the Collection If we look at the list above, the collection with the most intrinsic value is Rich Birds, because there are only 325 of them. From the list above, the collection with the least intrinsic value if Freedom Eagles, because there are 3,448 of them. The implication of collection size is that the larger the collection, the more people can own them. And the smaller the collection, the fewer people can own them. Choosing to buy collections with a smaller size because they are rarer is one possible metric to evaluate NFT collections when comparing several collections. Is this an important metric for you? Leave a comment below and share how important this metric is when evaluating NFT collections for purchase (or to sell) 👇 This information is provided for educational purposes only to explain the dynamics of the NFT marketplace and is not intended as financial advice. The examples used in this series are from the Freedom NFT Project collections, however the evaluation metrics described in this series apply to any NFT collection. Trading NFTs involves risk, so be sure to do your own research before buying or selling NFTs. Don't risk more money than you can afford to lose when purchasing NFTs.