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Bubbles in Ethereum

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  • Bellón, Carlos
  • Figuerola-Ferretti, Isabel

Abstract

We apply the (Phillips et al., 2015a,b) methodology to date-stamp bubbles in the Ethereum blockchain. Our analysis of the drivers of fundamental value suggests that the explosive behavior documented in ether prices does not constitute speculative bubbles but reflects the abrupt rally of demand for the use of the Ethereum Virtual Machine tied to the development of the decentralized application (dApp) ecosystem.

Suggested Citation

  • Bellón, Carlos & Figuerola-Ferretti, Isabel, 2022. "Bubbles in Ethereum," Finance Research Letters, Elsevier, vol. 46(PB).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321003871
    DOI: 10.1016/j.frl.2021.102387
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    References listed on IDEAS

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    More about this item

    Keywords

    Cryptocurrency; Bubble; Ethereum; Explosiveness; Fundamentals;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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