art market; cryptocurrency; Ethereum blockchain; herding; liquidity; network; nonfungible tokens; price index; social media; speculation; Accounting; Economics, Econometrics and Finance (all)
Abstract :
[en] This paper analyzes the sales of 875,389 art nonfungible tokens (NFTs) on the Ethereum blockchain to identify the key determinants influencing NFT pricing and market dynamics. We find that market liquidity and trade volume are strong predictors of NFT prices. Contrarily, social media activity negatively correlates with prices. Introducing an artist ranking system, our study reveals a “superstar effect”, with a few artists dominating sales, and herding behaviour within the NFT market.
Research center :
Interdisciplinary Centre for Security, Reliability and Trust (SnT) > FINATRAX - Digital Financial Services and Cross-organizational Digital Transformations NCER-FT - FinTech National Centre of Excellence in Research
Disciplines :
Computer science Management information systems Finance
Author, co-author :
FRIDGEN, Gilbert ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX
Kräussl, Roman ; Bayes Business School (formerly Cass), Hoover Institution at Stanford University and CEPR, London, United Kingdom
PAPAGEORGIOU, Orestis ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX
TUGNETTI, Alessandro ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Finance (DF)
This research was funded in part by the Luxembourg National Research Fund (FNR), grant reference 16326754 and NCER22/IS/16570468/NCER-FT, by PayPal, PEARL grant reference 13342933/Gilbert Fridgen and by the Luxembourg Institute for Advanced Studies (IAS), Young Academics scheme, DATART project. For the purpose of open access and in fulfillment of the obligations arising from the grant agreement, the author has applied a Creative Commons Attribution 4.0 International (CC BY 4.0) license to any Author Accepted Manuscript version arising from this submission.
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