A network analysis of the non-fungible token (NFT) market: structural characteristics, evolution, and interactions
Abstract Non-fungible tokens (NFTs) are a type of digital asset that can prove ownership of both virtual and physical assets using blockchains. Even though creating and trading NFTs have experienced a significant increase, research on the NFT market and its features is limited. In this study, we aim...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2023-06-01
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| Series: | Applied Network Science |
| Subjects: | |
| Online Access: | https://doi.org/10.1007/s41109-023-00565-4 |
| _version_ | 1827910966743924736 |
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| author | Sajjad Alizadeh Amin Setayesh Arash Mohamadpour Behnam Bahrak |
| author_facet | Sajjad Alizadeh Amin Setayesh Arash Mohamadpour Behnam Bahrak |
| author_sort | Sajjad Alizadeh |
| collection | DOAJ |
| description | Abstract Non-fungible tokens (NFTs) are a type of digital asset that can prove ownership of both virtual and physical assets using blockchains. Even though creating and trading NFTs have experienced a significant increase, research on the NFT market and its features is limited. In this study, we aim to bridge this gap by conducting a comprehensive analysis on the NFT market and its evolution from a network perspective. We examined the transactions network between NFT buyers and sellers and analyzed the structural characteristics of the NFT trades network. Additionally, we looked at how NFT usage and transactions have changed over time. Our findings indicate that a few participants are responsible for most of the NFT sales and purchases, while the majority of the addresses have only a few NFT transactions. Furthermore, we investigated the structural properties of the NFT trades network, including centrality measures, clustering coefficient, and assortativity, and how they have changed over time. We also explored the interactions between NFTs by constructing a graph of NFT relations. We identified four major communities and highlighted the top NFT projects in each community. We also examined the NFT projects that buyers mostly purchase together. |
| first_indexed | 2024-03-13T01:56:43Z |
| format | Article |
| id | doaj.art-c39c55be7d1d45c79fd09b69b20d58aa |
| institution | Directory Open Access Journal |
| issn | 2364-8228 |
| language | English |
| last_indexed | 2024-03-13T01:56:43Z |
| publishDate | 2023-06-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Applied Network Science |
| spelling | doaj.art-c39c55be7d1d45c79fd09b69b20d58aa2023-07-02T11:10:23ZengSpringerOpenApplied Network Science2364-82282023-06-018111810.1007/s41109-023-00565-4A network analysis of the non-fungible token (NFT) market: structural characteristics, evolution, and interactionsSajjad Alizadeh0Amin Setayesh1Arash Mohamadpour2Behnam Bahrak3University of TehranUniversity of TehranUniversity of TehranTehran Institute for Advanced Studies, Khatam UniversityAbstract Non-fungible tokens (NFTs) are a type of digital asset that can prove ownership of both virtual and physical assets using blockchains. Even though creating and trading NFTs have experienced a significant increase, research on the NFT market and its features is limited. In this study, we aim to bridge this gap by conducting a comprehensive analysis on the NFT market and its evolution from a network perspective. We examined the transactions network between NFT buyers and sellers and analyzed the structural characteristics of the NFT trades network. Additionally, we looked at how NFT usage and transactions have changed over time. Our findings indicate that a few participants are responsible for most of the NFT sales and purchases, while the majority of the addresses have only a few NFT transactions. Furthermore, we investigated the structural properties of the NFT trades network, including centrality measures, clustering coefficient, and assortativity, and how they have changed over time. We also explored the interactions between NFTs by constructing a graph of NFT relations. We identified four major communities and highlighted the top NFT projects in each community. We also examined the NFT projects that buyers mostly purchase together.https://doi.org/10.1007/s41109-023-00565-4BlockchainTransaction graphComplex networksNon-fungible token |
| spellingShingle | Sajjad Alizadeh Amin Setayesh Arash Mohamadpour Behnam Bahrak A network analysis of the non-fungible token (NFT) market: structural characteristics, evolution, and interactions Applied Network Science Blockchain Transaction graph Complex networks Non-fungible token |
| title | A network analysis of the non-fungible token (NFT) market: structural characteristics, evolution, and interactions |
| title_full | A network analysis of the non-fungible token (NFT) market: structural characteristics, evolution, and interactions |
| title_fullStr | A network analysis of the non-fungible token (NFT) market: structural characteristics, evolution, and interactions |
| title_full_unstemmed | A network analysis of the non-fungible token (NFT) market: structural characteristics, evolution, and interactions |
| title_short | A network analysis of the non-fungible token (NFT) market: structural characteristics, evolution, and interactions |
| title_sort | network analysis of the non fungible token nft market structural characteristics evolution and interactions |
| topic | Blockchain Transaction graph Complex networks Non-fungible token |
| url | https://doi.org/10.1007/s41109-023-00565-4 |
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