On the Cryptocurrency Prices: Determinants and Stylized Facts

Abstract

A big data set consisting both GitHub and market metrics have been utilized to decompose the inherent attributes of 240 cryptocurrencies’ effects on the price. Three main aspects of projects were considered: Popularity, Maintenance and Competition. Majority of the related variables are distributed as Gaussian, and, only the tail distribution of cryptocurrency supply follows a power law. It turns out that supply side popularity of cryptocurrencies are the most important driving force among others. Crypto-asset prices are being dominated by the supply side participants’ actions. Moreover, longterm maintenance of cryptocurrency projects have no effect on their prices. It can be said that valuation-span of market participants is extremely short-sighted.