Exploring the connectedness between non-fungible token, decentralized finance and housing market: Deep insights from extreme events
The current digital innovation, health crisis, together with catastrophic economic and financial events have disturbed both digital and conventional asset markets that caused drastic change in investment avenues. Therefore, the purpose of this study is to investigate the connectedness between Non-Fu...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-10-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024142557 |
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| author | Rija Anwar Syed Ali Raza |
| author_facet | Rija Anwar Syed Ali Raza |
| author_sort | Rija Anwar |
| collection | DOAJ |
| description | The current digital innovation, health crisis, together with catastrophic economic and financial events have disturbed both digital and conventional asset markets that caused drastic change in investment avenues. Therefore, the purpose of this study is to investigate the connectedness between Non-Fungible Token (NFTs), Decentralized Finance (DeFi) assets, and housing market by applying Quantile connectedness of Ando et al. [27]with extreme tail of distribution technique. The period of this study is extended from 5th March 2018 to 8th January 2024 which covered recent catastrophic events such as Bitcoin Price Crash-2018, COVID-19, Global plummet in Oil Demand-2020, and Russia-Ukraine War. The findings reveal that NFTs and DeFi assets possess weak connectedness with housing market in normal market state, however, connectedness become robust in extreme bearish and bullish market states. Moreover, NFTs and DeFi assets are net transmitters and housing market acts as net receiver of shock in all market states. Investors, portfolio managers, and policymakers should carefully analyze both digital financial assets and housing market especially during extreme events to build well diversified profit-gaining portfolios and to formulate policies. |
| format | Article |
| id | doaj-art-7777e4f5eee44c63be7b646dc8d3bf7d |
| institution | Kabale University |
| issn | 2405-8440 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj-art-7777e4f5eee44c63be7b646dc8d3bf7d2024-11-12T05:18:58ZengElsevierHeliyon2405-84402024-10-011020e38224Exploring the connectedness between non-fungible token, decentralized finance and housing market: Deep insights from extreme eventsRija Anwar0Syed Ali Raza1Department of Business Administration, IQRA University, Karachi, 75300, PakistanDepartment of Business Administration, IQRA University, Karachi, 75300, Pakistan; Corresponding author.The current digital innovation, health crisis, together with catastrophic economic and financial events have disturbed both digital and conventional asset markets that caused drastic change in investment avenues. Therefore, the purpose of this study is to investigate the connectedness between Non-Fungible Token (NFTs), Decentralized Finance (DeFi) assets, and housing market by applying Quantile connectedness of Ando et al. [27]with extreme tail of distribution technique. The period of this study is extended from 5th March 2018 to 8th January 2024 which covered recent catastrophic events such as Bitcoin Price Crash-2018, COVID-19, Global plummet in Oil Demand-2020, and Russia-Ukraine War. The findings reveal that NFTs and DeFi assets possess weak connectedness with housing market in normal market state, however, connectedness become robust in extreme bearish and bullish market states. Moreover, NFTs and DeFi assets are net transmitters and housing market acts as net receiver of shock in all market states. Investors, portfolio managers, and policymakers should carefully analyze both digital financial assets and housing market especially during extreme events to build well diversified profit-gaining portfolios and to formulate policies.http://www.sciencedirect.com/science/article/pii/S2405844024142557NFTsDeFi assetsHousing marketCatastrophic eventsThree distinct market statesExtreme quantile connectedness |
| spellingShingle | Rija Anwar Syed Ali Raza Exploring the connectedness between non-fungible token, decentralized finance and housing market: Deep insights from extreme events Heliyon NFTs DeFi assets Housing market Catastrophic events Three distinct market states Extreme quantile connectedness |
| title | Exploring the connectedness between non-fungible token, decentralized finance and housing market: Deep insights from extreme events |
| title_full | Exploring the connectedness between non-fungible token, decentralized finance and housing market: Deep insights from extreme events |
| title_fullStr | Exploring the connectedness between non-fungible token, decentralized finance and housing market: Deep insights from extreme events |
| title_full_unstemmed | Exploring the connectedness between non-fungible token, decentralized finance and housing market: Deep insights from extreme events |
| title_short | Exploring the connectedness between non-fungible token, decentralized finance and housing market: Deep insights from extreme events |
| title_sort | exploring the connectedness between non fungible token decentralized finance and housing market deep insights from extreme events |
| topic | NFTs DeFi assets Housing market Catastrophic events Three distinct market states Extreme quantile connectedness |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024142557 |
| work_keys_str_mv | AT rijaanwar exploringtheconnectednessbetweennonfungibletokendecentralizedfinanceandhousingmarketdeepinsightsfromextremeevents AT syedaliraza exploringtheconnectednessbetweennonfungibletokendecentralizedfinanceandhousingmarketdeepinsightsfromextremeevents |