Frequency connectedness between FinTech, NFT and DeFi: Considering linkages to investor sentiment

【Author】 Gunay, Samet; Goodell, John W.; Muhammed, Shahnawaz; Kirimhan, Destan

【Source】INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS

【影响因子】8.235

【Abstract】We explore the domain of FinTech, DeFi, and NFT market relationships considering investor attention. Using frequency connectedness analysis, we employ two different investor sentiment measures corresponding to cryptocurrency markets and the FinTech industry. Averaged median dynamic connectedness results indicate the dominance of the FinTech industry over the DeFi and NFT markets, with this effect more significant over short-term market cycles rather than long-term. Results of net pairwise dynamic directional connectedness analysis show increasing DeFi and NFT market stresses following the pandemic period that we identify as not related to the aftermath of the outbreak but rather to FinTech market dynamics. We also identify in turn return spillovers from DeFi, NFT, and investor sentiment for the cryptocurrency market to investor sentiment for the FinTech industry. This was especially pronounced during 2022 and potentially attributable to cyber mischief in the DeFi market. Results highlight unregulated cyber markets having the potential to engender financial instability.

【Keywords】DeFi; NFT; FinTech; Investor sentiment; Cryptocurrency; Hacks; Cybersecurity

【发表时间】2023 NOV

【收录时间】2023-10-25

【文献类型】实证数据

【主题类别】

区块链应用-虚拟经济-DeFi