Spillover analysis on NFTs, NFT-affiliated tokens and NFT submarkets

Kin Hon HO, Monica LAW, Yun HOU, Tse Tin David CHAN

Research output: Contribution to journalArticlespeer-review


Since the beginning of 2021, non-fungible tokens (NFTs) have been in the spotlight. Cryptocurrencies play a vital role in the NFT market because they can be used to purchase NFTs. Specifically, the native cryptocurrency associated with the corresponding NFT is called an NFT-affiliated token. One may be interested in exploring the relationship between NFTs and their associated tokens. Through spillover analysis, we found limited spillovers between these two asset classes. In addition, there are multiple submarkets within an NFT and multiple submarkets of the same type across different NFTs. We conducted spillover analyses to examine the extent of shock transmission among these submarkets. Our results show that NFTs are distinct from cryptocurrencies and their associated tokens. Furthermore, there is limited spillover between submarkets belonging to the same NFT and across different NFTs. This demonstrates that effective risk management can be achieved through diversification by adding NFT-affiliated tokens and submarkets to a non-diversified NFT portfolio. Copyright © 2023 Elsevier Inc. All rights reserved.

Original languageEnglish
Article number104598
JournalFinance Research Letters
Early online dateDec 2023
Publication statusPublished - Feb 2024


Ho, K.-H., Law, M., Hou, Y., & Chan, T.-T. (2024). Spillover analysis on NFTs, NFT-affiliated tokens and NFT submarkets. Finance Research Letters, 60, Article 104598. https://doi.org/10.1016/j.frl.2023.104598


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