Researchers at the Institute of Nuclear Physics of the Polish Academy of Sciences in Cracow have delved into the statistical intricacies of the burgeoning market for. Led by Prof. Stanislaw Drozdz and Dr. Marcin Watorek, the team analyzed global statistical features of NFTs, shedding light on this digital asset market’s unique dynamics and complexities.
Owners assign tangible value to specific digital data sets, essentially treating them as virtual representations of assets like art or property. Unlike bitcoins, where each unit is identical,Prof. Drozdz explains, “Trading in digital assets treated in this way is not guided by the logic of typical currency markets but by the logic of markets trading in objects of a collector’s nature, such as paintings by famous painters.
Analyzing data from the CryptoSlam and Magic Eden portals, the team studied collections such as Blocksmith Labs Smyths, Famous Fox Federation, Lifinity Flares, Okay Bears, and Solana Monkey Business. These collections, comprising images and animations, exhibited average transaction values close to a thousand dollars.
Moreover, the study revealed multifractality, a non-linear form of self-similarity observed in various digital collectors’ market aspects, including minimum prices, transaction frequency, and intervals between transactions. The cryptocurrency price directly impacted the volume generated by collections, indicating a connection between the NFT market and cryptocurrency markets.