Pricing dynamics and herding behaviour of NFTs
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.
Authors
- Orestis Papageorgiou (ORCID: https://orcid.org/0000-0002-2245-5079)
- Gilbert Fridgen (ORCID: https://orcid.org/0000-0001-7037-4807)
- Alessandro Tugnetti (ORCID: https://orcid.org/0000-0003-3811-2828)
- Roman Kräussl (ORCID: https://orcid.org/0000-0001-8933-9278)
Institutions
- Hoover Institution (US)
- University of Luxembourg (LU)
- Luxembourg School of Business (LU)
Publication Details
- Journal
- European Financial Management
- Published
- 2024-09-10
- DOI
- https://doi.org/10.1111/eufm.12506
- Citations
- 5
- Primary Topic
- Consumer Market Behavior and Pricing
- Type
- article
- Field-Weighted Citation Impact
- 2.19
Funders
- Fonds National de la Recherche Luxembourg