![]() ![]() “If the news media are primarily hyping NFT markets, you should see a positive relation between NFT news and NFT volatility and returns,” said White. They measured media’s influence on market participation, volatility and seller returns. Applying advanced analytics across the combined data allowed researchers to estimate the link between NFT news and market fluctuation across a number of days. They also measured the tone of each article. To measure media’s effect on the market, researchers merged their databases of trades and news articles on a daily basis. How Does Media Coverage Affect NFT Trading But there were 3,000 NFT articles in the first quarter of 2021 alone and 12,000 in the final quarter of the year. Of the 26,000 NFT articles in the study’s database, only 200 dated back to 2020. Media coverage of NFTs similarly skyrocketed in the same period, picking up real speed in 2021. ![]() NFT dollar volume grew 255% year-over-year in 2020 and 62,912% in 2021. The number of unique buyers and sellers rose from 8,000 in 2019 to over 1.15 million in 2021. Growth of the NFT Market and Its Media CoverageĮxamining 7.6 million NFT trades from 2017 to 2021, the study identified extreme growth in the number of NFTs minted (i.e., created), the total number of NFTs, dollar volume, and marketplaces. A new study co-authored by Joshua White, a finance professor at Vanderbilt’s Owen Graduate School of Management, finds that in the case of NFTs, media fosters growth without triggering a frenzy of investment decisions. The debate has never been more significant than in the non-fungible tokens (NFT) market, where massive growth and media coverage appear to have risen as one, and few entrants fully understand the underlying blockchain-based technology. At the same time, when journalists fixate on growth and quick returns to excite their readers, news can create a fear of missing out that prompts irrational investments. It’s a common question among financial professionals and market researchers: how much does the media affect rapid growth in high-risk markets? Ample evidence shows media coverage plays a vital role by reducing uncertainty and informing the public about investment risks. New research from Vanderbilt's Joshua White explores the relationship between NFT market growth and media coverage ![]()
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