Dissecting the NFT Market: Implications of Creation Methods on Trading Behavior

Authors

DOI:

https://doi.org/10.5195/ledger.2024.377

Keywords:

1. NFT market, 2. Blockchain, 3. creation method, 4. Regression, 5. Classification, 6. OpenSea, 7. AI-generated

Abstract

Amidst the frenzy surrounding Non-Fungible Tokens (NFTs) in 2021, the concept of digital assets and trading was redefined. Although the initial hype may have subsided, NFTs continue to drive innovation in ownership, with substantial revenue streams flowing through the market. This transformative shift underscores the importance of discerning the factors that shape this ecosystem. This paper delves into the intricate dynamics of the NFT market, particularly focusing on the impact of creation methods—whether hand-drawn or artificial intelligence (AI)-generated—on market behavior. In a comprehensive analysis of the NFT market, we have analyzed a vast dataset comprising 1,478,556 transactions of NFT art from the OpenSea marketplace in 2023 to explore correlations and patterns between key transactional features. Furthermore, we employed regression models to predict the sales of an NFT and classification models to distinguish between hand-drawn and AI-generated NFTs. Finally, by comparing different machine learning models, we identified the most appropriate model for analyzing the market, considering the non-linear relationships and complex nature of the NFT market. Overall, the results provided in this research can lead to making more informed decisions regarding investment, creation, and trading.  

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Published

2024-12-02

How to Cite

Beikzadeh, P., & Mosharraf, M. (2024). Dissecting the NFT Market: Implications of Creation Methods on Trading Behavior. Ledger, 9. https://doi.org/10.5195/ledger.2024.377

Issue

Vol. 9 (2024)

Section

Research Articles

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Copyright (c) 2024 Pegah Beikzadeh, Maedeh Mosharraf

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