 Are base layer blockchains establishing a new sector? Evidence from a connectedness approachGeul Lee and Doojin Ryu Research in International Business and Finance, 2025, vol. 73, issue PB Abstract: This study explores whether layer-1 blockchain platforms are evolving into an independent sector within the blockchain industry. We employ time-varying parameter and quantile vector autoregressive connectedness approaches to examine the return connectedness among the native tokens of layer-1 blockchain platforms and a comparison group. Our empirical results reveal a strengthening return connectedness among layer-1 native tokens, contrasting with observations from the comparison group. Layer-1 blockchain platforms are becoming more closely related over the sample period and may be progressing toward the establishment of an independent sector. Our findings highlight a growing need to investigate the connectedness of assets within the cryptocurrency market to better understand its structure and determine which cryptocurrencies can be grouped into sectors. Keywords: Layer-1; Blockchain; Cryptocurrency; Connectedness; Spillover; Tokenization (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:73:y:2025:i:pb:s0275531924004471 DOI: 10.1016/j.ribaf.2024.102654 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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