Price of Ethereum Token Effect on the Non-Fungible Token User Trading Activities in the 2020s

Abstract

This research investigates the relationship between the price of the Ethereum token and Non-Fungible Token (NFT) trading activities on the Ethereum blockchain in the 2020s. Through regression analysis and t-tests, the study explores how changes in Ethereum's price and price volatility influence NFT trading behaviors. The regression analysis reveals significant positive correlations between Ethereum's price and various NFT trading variables, indicating that an increase in Ethereum's price positively impacts sales volume, unique sellers, unique buyers, and average sales of NFTs. Conversely, Ethereum's price volatility demonstrates significant negative associations with NFT trading activities, suggesting that market uncertainty and risk aversion influence investor decisions. The findings provide valuable insights for practitioners, investors, and traders in the NFT market, offering guidance for decision-making strategies and market trends; however, the study also acknowledges limitations in establishing causal relationships and suggests future research directions. Understanding the dynamics between Ethereum's price and NFT trading activities is crucial in navigating the evolving landscape of blockchain-based assets and decentralized markets.