IDEAS home Printed from https://ideas.repec.org/a/vrn/cfinrd/y2025i1p36-46.html
   My bibliography  Save this article

Fear Regimes in DeFi: A Study of Investor Behavior and Market Dynamics

Author

Listed:
  • Gergana Taneva-Angelova

    (Department of Finance and Accounting, University of Plovdiv "Paisii Hilendarski")

  • Stefan Raychev

    (Department of Economic Sciences, University of Plovdiv "Paisii Hilendarski")

Abstract

The aim of this study is to analyze how fear affects investor behavior in decentral-ized financial (DeFi) markets. The focus is on the relationship between the Fear and Greed Index (F&G) and the market prices of governance tokens from major DeFi platforms, including PancakeSwap, Balancer, Compound, SushiSwap, Uniswap, Aave, and MakerDAO. Each of these tokens is a native asset linkedto a specific DeFi protocoland, beyond their tradability, they function as governance instruments, making them particularly sensitive to shifts in market sentiment and investor expectations. To examine how investor fear and greed impact token price dy-namics, we apply a combination of econometric and behavioral approaches. Our findings suggest that while investor sentiment may influence volatility and regime shifts, its direct predictive power over daily returns of governance tokens remains weak.

Suggested Citation

Handle: RePEc:vrn:cfinrd:y:2025:i:1:p:36-46
as

Download full text from publisher

File URL: https://journal-fn.ue-varna.bg/index.php/fnj/article/view/5/4
Download Restriction: no
---><---

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrn:cfinrd:y:2025:i:1:p:36-46. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stoyan Kirov (email available below). General contact details of provider: https://edirc.repec.org/data/uevarbg.html .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.