This study offers an insight into how the crypto market responds to technological innovations and the adoption of upgrades, as reflected in market dynamics and pricing behaviors.
Financial innovation and technological advancements are redefining today's approach to financial services and investments, with their impact on markets continuing to spark analysis and debate.
Our results indicate that ETH's returns and volatility behave differently across each upgrade, with upgrades related to transaction verifiers' (i.e., minters) interests demonstrating a significantly greater influence compared to those focused on functionality and security enhancements. Moreover, milestone events such as the initiation and transition of ETH's protocol to Proof of Stake (PoS) have spillover effects that extend beyond ETH, and influence the broader crypto market. This study offers an insight into how the crypto market responds to technological innovations and the adoption of upgrades, as reflected in market dynamics and pricing behaviors.
Phd in Sun Yat-sen University visiting Phd in Humboldt University of Berlin