Szydło P, Wątorek M, Kwapień J, Drożdż S. Characteristics of price related fluctuations in non-fungible token (NFT) market.
CHAOS (WOODBURY, N.Y.) 2024;
34:013108. [PMID:
38194369 DOI:
10.1063/5.0185306]
[Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Received: 10/30/2023] [Accepted: 12/11/2023] [Indexed: 01/11/2024]
Abstract
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.
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