Market Forces in Play: Analyzing Pricing Dynamics of NBA NFT Collectibles

DOI

10.2991/978-94-6463-459-4_63How to use a DOI?

Keywords

NFT market; pricing mechanism; digital collectibles

Abstract

This manuscript delves into the influence of supply and demand on pricing mechanisms within nascent digital markets, with a particular focus on the sphere of digital collectibles associated with the National Basketball Association (NBA). Employing regression analysis on transaction data sourced from nbatopshot.com, the investigation meticulously explores pricing trends and discerns patterns pertinent to the NBA’s digital collectibles. The findings corroborate the fundamental economic tenets of demand, highlighting that escalating demand and the novelty of the market are pivotal in propelling NFT prices. In contrast, a high concentration of ownership detrimentally impacts NFT valuations, likely due to the enhanced risk of market manipulation and diminished asset liquidity. The principle of scarcity emerges as a crucial determinant, with NFTs of limited issuance or distinct attributes commanding premium prices, reflecting the market’s predilection for rarity. Furthermore, the analysis accentuates the significance of player-centric factors within the NBA NFT market, where performance metrics markedly influence pricing structures. Despite its distinctive characteristics, the NFT marketplace broadly adheres to classical economic theories. This research furnishes a comprehensive quantitative insight into the dynamics of the NFT market, offering valuable guidance for stakeholders to formulate nuanced trading and investment strategies.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Minghong Zhuang
PY  - 2024
DA  - 2024/07/23
TI  - Market Forces in Play: Analyzing Pricing Dynamics of NBA NFT Collectibles
BT  - Proceedings of the 2024 9th International Conference on Social Sciences and Economic Development (ICSSED 2024)
PB  - Atlantis Press
SP  - 548
EP  - 558
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-459-4_63
DO  - 10.2991/978-94-6463-459-4_63
ID  - Zhuang2024
ER  -