Paweł Szydło, Marcin Wątorek, Jarosław Kwapień, Stanisław Drożdż

Characteristics of price related fluctuations in non-fungible token (NFT) market

  • Applied Mathematics
  • General Physics and Astronomy
  • Mathematical Physics
  • Statistical and Nonlinear Physics
Save to CiteDrive Show PDF

A non-fungible token (NFT) market is a new trading invention based on the blockchain technology, which parallels the cryptocurrency market. In the present work, we study capitalization, floor price, the number of transactions, the inter-transaction times, and the transaction volume value of a few selected popular token collections. The results show that the fluctuations of all these quantities are characterized by heavy-tailed probability distribution functions, in most cases well described by the stretched exponentials, with a trace of power-law scaling at times, long-range memory, persistence, and in several cases even the fractal organization of fluctuations, mostly restricted to the larger fluctuations, however. We conclude that the NFT market—even though young and governed by somewhat different mechanisms of trading—shares several statistical properties with the regular financial markets. However, some differences are visible in the specific quantitative indicators.

Need a simple solution for managing your BibTeX entries? Explore CiteDrive!

  • Web-based, modern reference management
  • Collaborate and share with fellow researchers
  • Integration with Overleaf
  • Comprehensive BibTeX/BibLaTeX support
  • Save articles and websites directly from your browser
  • Search for new articles from a database of tens of millions of references
Try out CiteDrive

More from our Archive