Exploring the relationship between rarity and price of profile picture NFT: A formal concept analysis on the BAYC NFT collection

Non-fungible token (NFT) is a digital asset whose ownership can be validated and controlled via blockchain technology. The NFT market is a rapidly growing field, and the rarity of NFT is an essential factor that affects its price, as scarcity leads to higher demand. This study focuses on the BAYC NFT collection, which is a successful and representative collection of profile picture NFT, and analyzes how rarity affects NFT prices. This paper investigates the relationship between the rarity and price of the BAYC NFT collection using formal concept analysis (FCA) method. The results show that rarity is a major factor influencing the price of NFT and the effect is more apparent in the medium rarity range. When rarity is very high or very low, other factors become significant determinants, such as the uniqueness and appeal of NFT, and even the naturalness of NFT images. This research highlights the importance of considering rarity when assessing NFT and underscores the need for a comprehensive evaluation of NFT rarity. This study also provides valuable insights into the NFT market and can be useful for NFT investors, creators, and collectors. Furthermore, the usefulness of FCA as a tool for quantifying NFT rarity and evaluating NFT price was demonstrated.