Pricing dynamics and herding behaviour of NFTs
Fridgen, G., Kräussl, R. 
ORCID: 0000-0001-8933-9278, Papageorgiou, O. & Tugnetti, A. (2024).
Pricing dynamics and herding behaviour of NFTs.
European Financial Management,
doi: 10.1111/eufm.12506
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.
| Publication Type: | Article |
|---|---|
| Additional Information: | © 2024 The Author(s). European Financial Management published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. |
| Publisher Keywords: | art market, cryptocurrency, Ethereum blockchain, herding, liquidity, network, nonfungible tokens, price index, social media, speculation |
| Subjects: | H Social Sciences > HG Finance |
| Departments: | Bayes Business School Bayes Business School > Finance |
| SWORD Depositor: |
Available under License Creative Commons Attribution.
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