A recent surge of research sheds light on the driving forces behind the NFT market, emphasizing personal experiences as a key factor. Three studies conducted by researchers from Western University, Tilburg University, the University of North Carolina at Chapel Hill, and Rennes School of Business reveal that individual experiences, luck, asset scarcity, and consumer optimism play pivotal roles in shaping NFT market dynamics.

One study, "On Non-fungible Tokens, Blockchain Hypes, and the Creation of Scarcity," delves into the market dynamics of Crypto Punks, highlighting that Ethereum investors were more likely to engage in the market at higher costs and saw increased gains. Ethereum's performance influenced decisions to sell or resell assets but did not necessarily impact NFT prices. The creation of rarity was identified as a significant determinant of pricing.

Another study, "Personal Experience Effects across Markets: Evidence from NFT and Cryptocurrency Investing," examines transaction-level data from approximately one million wallets. It explores how personal experiences contribute to NFT market bubbles, revealing that investors receiving more valuable NFTs in the primary market are more likely to participate in subsequent sales and engage in "lottery-like" cryptocurrencies.

In a counterintuitive finding, a third study, "The Impact of Experience, Overconfidence and Optimism on Future Cryptocurrency Ownership," discovers that negative past experiences and investor optimism positively influence the likelihood of future cryptocurrency and NFT ownership. Investors with negative experiences may exhibit a self-serving bias, attributing losses to external factors rather than poor decision-making.

These studies collectively underscore the significance of personal experiences, optimism, and asset scarcity in driving movements within the NFT market, providing valuable insights into the social and psychological factors shaping this dynamic space.