Characteristics of price related fluctuations in Non-Fungible Token (NFT) market

Pawe{\l} Szyd{\l}o, Marcin W\k{a}torek, Jaros{\l}aw Kwapie\'n and Stanis{\l}aw Dro\.zd\.z

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Abstract: A non-fungible token (NFT) market is a new trading invention based on the blockchain technology which parallels the cryptocurrency market. In the present work we study capitalization, floor price, the number of transactions, the inter-transaction times, and the transaction volume value of a few selected popular token collections. The results show that the fluctuations of all these quantities are characterized by heavy-tailed probability distribution functions, in most cases well described by the stretched exponentials, with a trace of power-law scaling at times, long-range memory, and in several cases even the fractal organization of fluctuations, mostly restricted to the larger fluctuations, however. We conclude that the NFT market - even though young and governed by a somewhat different mechanisms of trading - shares several statistical properties with the regular financial markets. However, some differences are visible in the specific quantitative indicators.

Date: 2023-10, Revised 2024-01
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Published in Chaos 34, 013108 (2024)

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