Examining the interrelatedness of NFTs, DeFi tokens and cryptocurrencies

【Author】 Karim, Sitara; Lucey, Brian M.; Naeem, Muhammad Abubakr; Uddin, Gazi Salah

【Source】FINANCE RESEARCH LETTERS

【影响因子】9.848

【Abstract】The high volatility of the blockchain markets has driven the attention of investors and market participants to concentrate on the diversification avenues of NFTs, DeFi Tokens, and Cryptocurrencies. We examined the extreme risk transmission of blockchain markets using the quantile connectedness technique at the median, extreme low, and extreme high volatility conditions. We find significant risk spillovers among blockchain markets with strong disconnection of NFTs. Meanwhile, time-varying features characterized various uneven economic circumstances. Overall, NFTs offer greater diversification avenues with substantial risk-bearing potential among other blockchain markets to shelter the investments and minimize extreme risks.

【Keywords】Blockchain markets; Diversification; Extreme risk spillovers; Quantile connectedness

【发表时间】2022 JUN

【收录时间】2022-07-17

【文献类型】实证性文章

【主题类别】

区块链治理-市场治理-数字货币