Herding in the non-fungible token (NFT) market

Abstract

In this study, we empirically examine the existence and dynamics of herding in the burgeoning market of non-fungible tokens (NFT). We find supportive evidence of the existence of herding in this market, the dynamics of which appears to be event-driven. A large inflow of newcomers or inexperienced investors can serve as a trigger of herding. Meanwhile, unlike in traditional asset markets, herding in NFT markets does not appear to happen across submarkets.