Characteristics of price related fluctuations in non-fungible token (NFT) market

Chaos. 2024 Jan 1;34(1):013108. doi: 10.1063/5.0185306.

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, persistence, 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 somewhat different mechanisms of trading-shares several statistical properties with the regular financial markets. However, some differences are visible in the specific quantitative indicators.