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NFTs and Cryptocurrencies—The Metamorphosis of the Economy under the Sign of Blockchain: A Time Series Approach

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  • Simona Andreea Apostu

    (Department of Statistics and Econometrics, Bucharest University of Economic Studies, 010552 Bucharest, Romania
    Institute of National Economy, 050771 Bucharest, Romania)

  • Mirela Panait

    (Institute of National Economy, 050771 Bucharest, Romania
    Department of Cybernetics, Economic Informatics, Finance and Accounting, Petroleum-Gas University of Ploiesti, 100680 Ploiesti, Romania)

  • Làszló Vasa

    (Management Campus, Széchenyi István University, 9026 Gyor, Hungary)

  • Constanta Mihaescu

    (Department of Statistics and Econometrics, Bucharest University of Economic Studies, 010552 Bucharest, Romania)

  • Zbyslaw Dobrowolski

    (Department of Institute of Public Affairs, Jagiellonian University, 30-387 Kraków, Poland)

Abstract

Although NFTs (non-fungible tokens) and cryptocurrencies are active on the same market, their prices are not so closely related over time. The objective of this paper is to identify the relationship between the two types of assets (NFTs and the cryptocurrencies Ethereum, Crypto Coin, and Bitcoin), using data for the period between September 2020 until February 2022. The conclusions of the study are useful for cryptocurrency and NFT issuers, but also for investors on the financial market who are reconfiguring their portfolios with increasing frequency, and use these new assets for speculative or hedging purposes based on blockchain technology. The results highlighted relationships between NFTs and Ethereum, between Ethereum and Crypto Coin, and between Bitcoin and Ethereum, Ethereum being a bridge between all four. Therefore, NFTs present a relationship with Ethereum, the NFTs price had a causal effect on the price of Ethereum.

Suggested Citation

  • Simona Andreea Apostu & Mirela Panait & Làszló Vasa & Constanta Mihaescu & Zbyslaw Dobrowolski, 2022. "NFTs and Cryptocurrencies—The Metamorphosis of the Economy under the Sign of Blockchain: A Time Series Approach," Mathematics, MDPI, vol. 10(17), pages 1-13, September.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:17:p:3218-:d:907566
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    Cited by:

    1. Sharan Kumar SHETTY & Cristi SPULBAR & Ramona BIRAU & Mircea Laurentiu SIMION, 2023. "Perceived Attitude of Youth Towards Cryptocurrency Investment: A Case Study for India," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 12-25.
    2. Qiao, Xingzhi & Zhu, Huiming & Tang, Yiding & Peng, Cheng, 2023. "Time-frequency extreme risk spillover network of cryptocurrency coins, DeFi tokens and NFTs," Finance Research Letters, Elsevier, vol. 51(C).
    3. Voicu D. Dragomir & Valentin Florentin Dumitru, 2023. "Recognition and Measurement of Crypto-Assets from the Perspective of Retail Holders," FinTech, MDPI, vol. 2(3), pages 1-17, August.

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