The nexus between non-fungible tokens (NFTS) and cryptocurrencies

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dc.authoridÖZBAY, Ferhat/0000-0002-7756-3835
dc.authorwosidÖZBAY, Ferhat/ABW-4426-2022
dc.contributor.authorDagli, Ibrahim
dc.contributor.authorPehlivan, Ceren
dc.contributor.authorOzbay, Ferhat
dc.date.accessioned2024-08-04T20:54:55Z
dc.date.available2024-08-04T20:54:55Z
dc.date.issued2023
dc.departmentİnönü Üniversitesien_US
dc.description.abstractBACKGROUND: Like Bitcoin or any other cryptocurrencies, non-fungible tokens (NFTs) count on blockchain technology, and NFTs are the latest and the most popular in a series of blockchain solutions. Traders in this ecosystem need to pay a dynamic fee, called a gas fee, for making any transactions on the Ethereum blockchain. The gas fee is measured by gwei, and traders must consider this as an additional cost. So, the current price of this fee may affect the decision of NFT creators or traders. OBJECTIVE: This study investigates the interrelationships between NTFs, cryptocurrencies (Ethereum and BTC), and gas fees using daily market data from January 2019 to November 2021. METHOD: Fourier Shin's (2016) cointegration test, Fully Modified Ordinary Least Squares, and Group Dynamic Least Squares tests were employed to analyze the data. Then, the variance Decomposition method was applied to determine what other variables explain the percentage of the total variance on NFTs-it also used Impulse-response functions for measuring the response of the NFTs variable for one standard deviation shock. RESULTS: Results show that an increase in gas fees, the daily volume of Bitcoin, and the daily volume of Ethereum decrease NFTs sales. There is a unidirectional relationship between lnSales and lnGasFee variables. Also, there is a determined unidirectional relationship between lnBTC and lnSales variables. Lastly, there is a one-way causality relationship between lnSales and lnETH variables. CONCLUSIONS: The primary causation of the relationship between NFTs, gas fees and Ethereum fees is most likely related to the use of Ethereum as the primary means of payment in the NFTs market and gas fees being a significant cost element in NFTs trading. Another point of view is that the dominance of Bitcoin in the market is very effective in pricing of other cryptocurrencies and in the sales and pricing of NFTs indirectly. It is supported by empirical findings that the main elements in the blockchain ecosystem are interrelated.en_US
dc.identifier.doi10.3233/HSM-220196
dc.identifier.endpage645en_US
dc.identifier.issn0167-2533
dc.identifier.issn1875-8703
dc.identifier.issue6en_US
dc.identifier.scopus2-s2.0-85178575254en_US
dc.identifier.scopusqualityQ3en_US
dc.identifier.startpage633en_US
dc.identifier.urihttps://doi.org/10.3233/HSM-220196
dc.identifier.urihttps://hdl.handle.net/11616/101702
dc.identifier.volume42en_US
dc.identifier.wosWOS:001173168700004en_US
dc.identifier.wosqualityQ3en_US
dc.indekslendigikaynakWeb of Scienceen_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherIos Pressen_US
dc.relation.ispartofHuman Systems Managementen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectNon-fungible tokenen_US
dc.subjectcryptocurrenciesen_US
dc.subjectand blockchain technologyen_US
dc.titleThe nexus between non-fungible tokens (NFTS) and cryptocurrenciesen_US
dc.typeArticleen_US

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