Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs

【Author】 Maouchi, Youcef; Charfeddine, Lanouar; El Montasser, Ghassen

【Source】FINANCE RESEARCH LETTERS

【影响因子】9.848

【Abstract】This paper investigates digital financial bubbles amidst the COVID-19 pandemic. Using a sample of 9 DeFi tokens, 3 NFTs, Bitcoin, and Ethereum, we detect several bubbles overlapping the examined cryptoassets. We also uncover DeFi and NFT-specific bubbles in Summer 2020 suggesting distinct driving factors for this class of assets. We document that DeFi and NFTs bubbles are less recurrent but have higher magnitudes than cryptocurrencies' bubbles. We also find that COVID-19 and trading volume exacerbate bubble occurrences, while Total Value Locked (TVL) is negatively associated with cryptoassets' bubbles. Our results suggest that TVL can be used as a tool for market monitoring.

【Keywords】COVID-19; DeFi; NFTs; Total Value Locked; Digital bubbles; Real-time detection

【发表时间】2022 JUN

【收录时间】2022-07-17

【文献类型】理论性文章

【主题类别】

区块链治理-市场治理-市场分析