Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs()()

This paper investigates digital financial bubbles amidst the COVID-19 pandemic. Using a sample of 9 DeFi tokens, 3 NFTs, Bitcoin, and Ethereum, we detect several bubbles overlapping the examined cryptoassets. We also uncover DeFi and NFT-specific bubbles in Summer 2020 suggesting distinct driving fa...

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Detalles Bibliográficos
Autores principales: Maouchi, Youcef, Charfeddine, Lanouar, El Montasser, Ghassen
Formato: Online Artículo Texto
Lenguaje:English
Publicado: The Author(s). Published by Elsevier Inc. 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9653299/
https://www.ncbi.nlm.nih.gov/pubmed/36406743
http://dx.doi.org/10.1016/j.frl.2021.102584
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author Maouchi, Youcef
Charfeddine, Lanouar
El Montasser, Ghassen
author_facet Maouchi, Youcef
Charfeddine, Lanouar
El Montasser, Ghassen
author_sort Maouchi, Youcef
collection PubMed
description This paper investigates digital financial bubbles amidst the COVID-19 pandemic. Using a sample of 9 DeFi tokens, 3 NFTs, Bitcoin, and Ethereum, we detect several bubbles overlapping the examined cryptoassets. We also uncover DeFi and NFT-specific bubbles in Summer 2020 suggesting distinct driving factors for this class of assets. We document that DeFi and NFTs bubbles are less recurrent but have higher magnitudes than cryptocurrencies’ bubbles. We also find that COVID-19 and trading volume exacerbate bubble occurrences, while Total Value Locked (TVL) is negatively associated with cryptoassets’ bubbles. Our results suggest that TVL can be used as a tool for market monitoring.
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spelling pubmed-96532992022-11-14 Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs()() Maouchi, Youcef Charfeddine, Lanouar El Montasser, Ghassen Financ Res Lett Article This paper investigates digital financial bubbles amidst the COVID-19 pandemic. Using a sample of 9 DeFi tokens, 3 NFTs, Bitcoin, and Ethereum, we detect several bubbles overlapping the examined cryptoassets. We also uncover DeFi and NFT-specific bubbles in Summer 2020 suggesting distinct driving factors for this class of assets. We document that DeFi and NFTs bubbles are less recurrent but have higher magnitudes than cryptocurrencies’ bubbles. We also find that COVID-19 and trading volume exacerbate bubble occurrences, while Total Value Locked (TVL) is negatively associated with cryptoassets’ bubbles. Our results suggest that TVL can be used as a tool for market monitoring. The Author(s). Published by Elsevier Inc. 2022-06 2021-12-08 /pmc/articles/PMC9653299/ /pubmed/36406743 http://dx.doi.org/10.1016/j.frl.2021.102584 Text en © 2021 The Author(s) Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Maouchi, Youcef
Charfeddine, Lanouar
El Montasser, Ghassen
Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs()()
title Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs()()
title_full Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs()()
title_fullStr Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs()()
title_full_unstemmed Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs()()
title_short Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs()()
title_sort understanding digital bubbles amidst the covid-19 pandemic: evidence from defi and nfts()()
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9653299/
https://www.ncbi.nlm.nih.gov/pubmed/36406743
http://dx.doi.org/10.1016/j.frl.2021.102584
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