Predictors of NFT Prices

Abstract

This article aims to broaden the understanding of the non-fungible tokens (NFTs) pricing determinants by investigating features, both market- and network-related aspects. NFTs are uniquely identifiable digital assets stored on the blockchain. Ownership is assigned through smart contracts and can be transferred or resold by the owner. The authors analyzed a comprehensive dataset from Signex.io with over 19,183 datapoints on NFT prices and NFT social communities using automated machine learning (AML), a suitable technique to investigate the most impactful factors due to a lack of knowledge on the exact determinants. Findings show that network factors are the most important pricing determinants: Twitter members followed by Discord members. Online communities drive the price of NFTs, but not in a linear fashion. Given the newness of the phenomenon and no agreed upon pricing models, this article contributes by using AML to discover the most relevant determinants of non-fungible tokens (NFT) prices.