Volatility Spillovers of New Cryptocurrencies Over Traditional Cryptocurrencies in the NFT Market: A Case Study of Mana

Abstract

This study uses the DCC-GARCH model to compare the correlation between two types of cryptocurrencies in two different fields. In the context of the popularity of NFTs and the metaverse, new cryptocurrencies based on the metaverse have been favored by investors. Through empirical analysis of mana cryptocurrencies in the NFT market, we find that the new cryptocurrencies in the NFT market have high volatility to Bitcoin, Ethereum, and traditional cryptocurrencies in the past year. Therefore, we conclude that new cryptocurrencies are more likely to be one of the factors for portfolio diversification.