The NFT Hype: What Draws Attention to Non-Fungible Tokens?

Mathematics

Simón Velasquez¹  Sandra Gaitán¹  Diego Jaramillo¹  Christian Pinto-Gutiérrez² 

[1] Center for Research in Economics and Finance (CIEF), School of Economics and Finance, Universidad EAFIT, Medellin 050022, Colombia;Faculty of Business and Economics, Universidad de Talca, Talca 3460000, Chile;

关键词: NFT;    non-fungible tokens;    investor attention;    cryptocurrency;   

DOI  :  10.3390/math10030335

来源: DOAJ

【 摘 要 】

Non-fungible tokens (NFTs) can be used to represent ownership of digital art or any other unique digital item where ownership is recorded in smart contracts on a blockchain. NFTs have recently received enormous attention from both cryptocurrency investors and the media. We examine why NFTs have gotten so much attention. Using vector autoregressive models, we show that Bitcoin returns significantly predict next week’s NFT growth in popularity, measured by Google search queries. Moreover, wavelet coherence analysis suggests that Bitcoin and Ether returns are significant drivers of next week’s attention to NFTs. These results indicate that the remarkable increases in prices of major cryptocurrencies can explain the hype around NFTs.

【 授权许可】

Unknown