Unraveling the Connectedness between Non-Fungible Tokens, Decentralized Finance, and Green Assets During Turbulent Times

Authors

• Rija Anwar, IQRA University, Karachi, PakistanFollow
• Syed Ali Raza, IQRA University, Karachi, Pakistan

Abstract

Green assets during the Bitcoin plummet-2018, COVID-2019, worldwide decline in oil demand-2020, and the Russia-Ukraine Conflict. The quantile connectedness approach, combined with the extreme tail of distribution technique (Ando et al., 2021), has been employed. According to static quantile connectedness, NFTs and DeFi assets perform the role of spillover transmitters; in contrast, green assets receive spillovers across three distinctive market settings. Additionally, the dynamic time-varying net directional connectedness estimates reveal that during normal market condition, the connectedness degree between NFTs, DeFi assets, and green assets remains low relative to extreme events at different point in time. Moreover, it provides valuable insights and practical guidance to investors, portfolio managers, and policymakers.

Keywords

Non-Fungible Tokens, Decentralized Finance, Green Bond, Clean Energy, Quantile Connectedness, Extreme Events

Disclosure of AI Use

yes

DOI

10.54784/1990-6587.1807

Journal of Economic Literature Subject Codes

G-14

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Recommended Citation

Anwar, R., & Raza, S. (2026). Unraveling the Connectedness between Non-Fungible Tokens, Decentralized Finance, and Green Assets During Turbulent Times. Business Review, 21(2). Retrieved from https://doi.org/10.54784/1990-6587.1807