Disentangling the Relationship between Portfolio Homogenization and Transaction of Non-fungible Tokens

Dan Ma, Mengyao Fu, Jie Fang, Zhao Cai

Research output: Chapter in Book/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

There has been an explosion in the popularity of Non-Fungible Tokens (NFTs), drawing attention from practitioners and scholars alike since 2021. Each NFT denotes a digital asset in the likes of an artwork, a tweet, or a video that is recorded on the blockchain with a unique identifying code. In turn, the emergence of NFTs has transformed the digital asset landscape. With the rapid growth of the NFT market, there is a concern that the market is becoming increasingly homogenized due to readily available blockchain technologies and relatively low costs of NFT mints. To this end, this study attempts to elucidate how NFT portfolio homogenization affects transaction volume and variation in the marketplace. Particularly, we collected and analyzed a dataset of 2,004 collections comprising 7,151,515 NFTs from OpenSea, a leading NFT platform. We discovered significant inverted U-shaped relationships between NFT portfolio homogenization and transaction variation and transaction volume.

Original languageEnglish
Title of host publicationInternational Conference on Information Systems, ICIS 2023
Subtitle of host publication"Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies"
PublisherAssociation for Information Systems
ISBN (Electronic)9781713893622
Publication statusPublished - 2023
Event44th International Conference on Information Systems: Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies, ICIS 2023 - Hyderibad, India
Duration: 10 Dec 202313 Dec 2023

Publication series

NameInternational Conference on Information Systems, ICIS 2023: "Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies"

Conference

Conference44th International Conference on Information Systems: Rising like a Phoenix: Emerging from the Pandemic and Reshaping Human Endeavors with Digital Technologies, ICIS 2023
Country/TerritoryIndia
CityHyderibad
Period10/12/2313/12/23

Keywords

  • NFT artwork
  • Non-fungible token
  • portfolio homogenization
  • transaction variation
  • transaction volume

ASJC Scopus subject areas

  • Computer Science Applications
  • Information Systems

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