Periodicity and Influences in the NFT Market

41 Pages Posted: 31 Jan 2023

See all articles by J. Christopher Westland

J. Christopher Westland

University of Illinois at Chicago - Department of Information and Decision Sciences

Date Written: January 30, 2023


Nonfungible tokens (NFTs) are digital assets that represent the ownership of a unique item, such as a piece of art, a collectible, or a virtual real estate property. These tokens are stored on a blockchain, which is a distributed ledger that allows for the secure and transparent record-keeping of transactions. The first NFTs, known as ColoredCoins, were created in 2012 as a way to represent the ownership of various real-world assets on the Bitcoin blockchain. In 2014, the Counterparty platform extended Bitcoin’s functionality and enabled the creation and trade of assets on a decentralized ledger network. This led to the emergence of digital marketplaces for creators, such as CryptoPunk and CryptoKitties, which became popular in 2017. CryptoKitties was covered by CNN, MSNBC, and The New York Times, which generated even more demand for NFTs. The CryptoKitties movement inspired the creation of the first version of OpenSea in late 2017, which described itself as an open marketplace for any non-fungible asset on the Ethereum blockchain. The NFT market was small up until the 2021 announcement and sale of Beeple’s “Everydays” when NFTs gained widespread attention from the general public. “Everydays” was the third-highest auction price ever earned by a living artist. Soon after the NFT market blossomed, with NFT sales reaching $18 billion in 2021, about $2.6 billion of that being classified as “art.” This represented a significant increase from the previous year when total NFT sales were around $2 billion. This research investigates price and trading volume movements in the NFT market, and possible external influences on price and volume from whole market effects and risk management through open market trade of Bitcoin (the largest cryptocurrency market) and Ether (most NFTs are on the Ethereum blockchain).

Keywords: blockchain, fractals

JEL Classification: O12

Suggested Citation

Westland, J. Christopher, Periodicity and Influences in the NFT Market (January 30, 2023). Available at SSRN: or

J. Christopher Westland (Contact Author)

University of Illinois at Chicago - Department of Information and Decision Sciences ( email )

University Hall, Room 2404, M/C 294
Chicago, IL 60607-7124
United States

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