Work

Pricing dynamics and herding behaviour of NFTs

Year: 2024

Type: article

Abstract: 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.

Source: European Financial Management

DOI: 10.1111/eufm.12506

Authors: Gilbert Fridgen, Roman Kräussl, Orestis Papageorgiou, Alessandro Tugnetti

Institutions: University of Luxembourg, Interdisciplinary Centre for Security, Reliability and Trust, Hoover Institution, Stanford University

Language: English

Topic: Blockchain Technology Applications and Security

Subfield: Information Systems

Field: Computer Science

Domain: Physical Sciences

Open Access status: hybrid

Estimated APC paid: $3,190

Funder: Fonds National de la Recherche Luxembourg