Investor attention and hype in NFTs and their connection to Bitcoin and Ethereum
This paper investigates the relationship between Bitcoin and Ethereum investor attention and investor attention towards non-fungible tokens (NFTs) with the use of various measures of investor attention. The research applies the two most common measures of investor attention, Google Trends and Tweets, in search of a relationship between investor attention for cryptocurrencies and NFTs. A vector autoregressive model is used to employ lagged variables for the explanation of current values of investor attention. With the use of weekly data for the year 2021, the study indicates that Bitcoin and Ethereum pricing and tweets provide the most significant influence on investor attention towards NFTs. Moreover, the lagged number of sales of a NFT can in part explain the investor attention towards that NFT. The positive nature of hypotheses posed in this study can unfortunately not be met with the current results.
Faculteit der Managementwetenschappen