Pricing dynamics and herding behaviour of NFTs-Reference-Cited by-同舟云学术

Pricing dynamics and herding behaviour of NFTs

Published:2024-09-10 Issue: Volume: Page:
ISSN:1354-7798
Container-title:European Financial Management
language:en
Short-container-title:Euro Fin Management

Author:

Fridgen Gilbert¹^ORCID,Kräussl Roman²^ORCID,Papageorgiou Orestis¹^ORCID,Tugnetti Alessandro³^ORCID

Affiliation:

1. SnT ‐ Interdisciplinary Center for Security, Reliability and Trust University of Luxembourg Luxembourg

2. Bayes Business School (formerly Cass) Hoover Institution at Stanford University and CEPR London

3. Department of Finance University of Luxembourg Luxembourg

Abstract

AbstractThis 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.

Publisher

Wiley

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/eufm.12506

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