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

<p dir="ltr">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 s...

Full description

Saved in:
Bibliographic Details
Main Author: Youcef Maouchi (17150986) (author)
Other Authors: Lanouar Charfeddine (10705000) (author), Ghassen El Montasser (17150989) (author)
Published: 2022
Subjects:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1864513553288921088
author Youcef Maouchi (17150986)
author2 Lanouar Charfeddine (10705000)
Ghassen El Montasser (17150989)
author2_role author
author
author_facet Youcef Maouchi (17150986)
Lanouar Charfeddine (10705000)
Ghassen El Montasser (17150989)
author_role author
dc.creator.none.fl_str_mv Youcef Maouchi (17150986)
Lanouar Charfeddine (10705000)
Ghassen El Montasser (17150989)
dc.date.none.fl_str_mv 2022-06-01T00:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.frl.2021.102584
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Understanding_digital_bubbles_amidst_the_COVID-19_pandemic_Evidence_from_DeFi_and_NFTs/24314254
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Information and computing sciences
Distributed computing and systems software
COVID-19
DeFi
NFTs
Total Value Locked
Digital bubbles
Real-time detection
dc.title.none.fl_str_mv Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">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.</p><h2>Other Information</h2><p dir="ltr">Published in: Finance Research Letters<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.frl.2021.102584" target="_blank">https://dx.doi.org/10.1016/j.frl.2021.102584</a></p>
eu_rights_str_mv openAccess
id Manara2_b0e8655ca243e7d19c178ef2aa655433
identifier_str_mv 10.1016/j.frl.2021.102584
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/24314254
publishDate 2022
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
rights_invalid_str_mv CC BY 4.0
spelling Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTsYoucef Maouchi (17150986)Lanouar Charfeddine (10705000)Ghassen El Montasser (17150989)Commerce, management, tourism and servicesBanking, finance and investmentInformation and computing sciencesDistributed computing and systems softwareCOVID-19DeFiNFTsTotal Value LockedDigital bubblesReal-time detection<p dir="ltr">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.</p><h2>Other Information</h2><p dir="ltr">Published in: Finance Research Letters<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.frl.2021.102584" target="_blank">https://dx.doi.org/10.1016/j.frl.2021.102584</a></p>2022-06-01T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.frl.2021.102584https://figshare.com/articles/journal_contribution/Understanding_digital_bubbles_amidst_the_COVID-19_pandemic_Evidence_from_DeFi_and_NFTs/24314254CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/243142542022-06-01T00:00:00Z
spellingShingle Understanding digital bubbles amidst the COVID-19 pandemic: Evidence from DeFi and NFTs
Youcef Maouchi (17150986)
Commerce, management, tourism and services
Banking, finance and investment
Information and computing sciences
Distributed computing and systems software
COVID-19
DeFi
NFTs
Total Value Locked
Digital bubbles
Real-time detection
status_str publishedVersion
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 Commerce, management, tourism and services
Banking, finance and investment
Information and computing sciences
Distributed computing and systems software
COVID-19
DeFi
NFTs
Total Value Locked
Digital bubbles
Real-time detection