Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The Underlying Factors of Ethereum Price Stability: An Investigation on What Underlying Factors Influence the Volatility of the Returns of Ethereum
Jönköping University, Jönköping International Business School.
2022 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Rising levels of uncertainty and distrust of governments and mass printing of fiat currencies in conjunction with pandemic-related events have led to a rotation into different assets such as cryptos. Without solid fundamentals, cryptocurrencies have spiked in price levels in the last few years; while popularity rises it remains heavily misunderstood. This study looks into the factors that specifically influence the cryptocurrency Ethereum's price volatility. According to previous literature and existing theories, it gathers seven explanatory variables that should impact the volatility and applies a GARCH (1,1) model. The study finds that the variables Google trends, hash rate, S&P 500, address count, and trade volume impacted the volatility. With only the hash rate and S&P 500 lowering the volatility. Both the ARCH and GARCH terms were significant, with the latter having the bigger coefficient, implying that the past volatility should be accounted for when forecasting future volatility. The findings within this study align with previous literature and other studies on different cryptos. It concludes that while Ethereum is still volatile and is in its growing phase it is headed in a positive direction in terms of stabilization. Further research or a repeated identical/similar study should be conducted again once the market has matured further.

Place, publisher, year, edition, pages
2022. , p. 51
Keywords [en]
Ethereum, Cryptocurrencies, Volatility, GARCH, Price-Formation, Internal, External
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-57099ISRN: JU-IHH-NAA-2-20220266OAI: oai:DiVA.org:hj-57099DiVA, id: diva2:1668080
Subject / course
JIBS, Economics
Supervisors
Examiners
Available from: 2022-06-27 Created: 2022-06-12 Last updated: 2025-10-13Bibliographically approved

Open Access in DiVA

fulltext(1165 kB)1414 downloads
File information
File name FULLTEXT01.pdfFile size 1165 kBChecksum SHA-512
f08800999a1e2b7b075b90682551efcc7a671bac4c341bc4687795e9a8c2189d3ed2c62ad096f802f7b818916cb9b2ed73b3c84fbc9c44d5de08b2e72b192b3c
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Hansson, Philip
By organisation
Jönköping International Business School
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 1414 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 2347 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf