Multiple Regression Tests and Prediction for Ethereum Transaction Value

Abstract

Unlike Bitcoin which was designed as an alternative to national currency as a medium of exchange, Ethereum was originally intended to facilitate projects based on its own platform. However, as the popularity of Ethereum continued to grow, it began to compete with every other cryptocurrencies and has become the second largest cryptocurrency in the world. Thus, it becomes important to study ether, Ethereum’s currency, as a medium of exchange. In this research, we will employ several regression models, including two stage least square (2SLS), regression discontinuity, difference-in-difference, and autoregression, to study various factors influencing ether’s transaction value, which is a crucial indicator as a medium of exchange and try to predict its growth. Through this study, we can have a clearer and more profound understanding of Ethereum’s development process,as well as a basic estimate of its future development trend.