Bubbles in NFT markets: correlated with cryptocurrencies or sentiment indexes?

Mingjun Guo, Shouyang Wang and Yunjie Wei

Applied Economics Letters, 2025, vol. 32, issue 4, 491-497

Abstract: This paper analyzes asset bubbles in the non-fungible token (NFT) and cryptocurrency markets, and assesses the impact of cryptocurrency prices and market sentiment on NFT bubble formation. We employ the Generalized Unit Root Test (GSADF test) to examine price bubbles across the NFT market, including sub-markets and related projects, as well as seven major cryptocurrencies. Our research identifies cryptocurrency bubbles in three distinct periods, with deflation observed in 2022. We establish a strong positive correlation between NFTs and most cryptocurrencies in terms of bubble dynamics. Notably, market sentiment indicators have varying effects on NFT bubbles; the VIX index has a positive impact, while the GEPU index and Google Trends data have negative effects. These findings provide valuable insights for regulators and investors into NFT bubble dynamics, cryptocurrency price behaviour, and market sentiment, facilitating informed decision-making.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2023.2275649 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:32:y:2025:i:4:p:491-497

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2023.2275649

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().