Relationship between the Pricing and Trading of Cryptocurrencies and the Collectible, Metaverse, and Art Non-Fungible Token Subcategories

Suliman Alshahmy, Arnaz Binsardi, Padmi Nagirikandalage

Research output: Working paperPreprint

Abstract

This paper aims to apply Vector Error Correction Model (VECM) to the prices and trading volume of Bitcoin and Ethereum, as they affect the non-fungible token subcategories of Collectibles, Metaverse and Art. The findings reveal that an accurate lag structure helps in capturing the lagged effects of shocks allowing the model to represent the intricate interdependencies among Bitcoin, Ethereum and the non-fungible token subcategories as indicated in the Impulse Response Function and Volatility Graph. This assists traders and investors visualize how these events and sudden increases in volatility impact the stability of cryptocurrency prices over time.
Original languageEnglish
PublisherSSRN
DOIs
Publication statusPublished - 20 Apr 2024

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