Cryptocurrency Valuation: An Explainable AI Approach

Liu, Yulin; Zhang, Luyao

doi:10.1007/978-3-031-37717-4_51

Cited by 9 publications

(2 citation statements)

References 61 publications

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“…This could involve constructing indices that track unique wallet address usage per network, analyze the availability and dynamics of liquidity pools, and quantify transaction volumes within specific blocks, as suggested in references. 30,33,[40][41][42][43] Such indices would offer invaluable insights into various dimensions of DeFi and FinTech applications and could act as pivotal indicators for cryptocurrency asset valuations.…”

Section: Developing Advanced Blockchain Transaction Indicesmentioning

confidence: 99%

Uniswap Daily Transaction Indices by Network

Chemaya,

Cong,

Joergensen

et al. 2023

Preprint

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Decentralized Finance (DeFi) is revolutionizing traditional financial services by enabling direct, intermediary-free transactions, thereby generating a substantial volume of open-source transaction data. This evolving DeFi landscape is particularly influenced by the emergence of Layer 2 (L2) solutions, which are poised to enhance network efficiency and scalability significantly, surpassing the existing capabilities of Layer 1 (L1) infrastructures. However, the detailed impact of these L2 solutions has been somewhat obscured due to a dearth of transaction data indices that can provide in-depth economic insights for empirical research. This study seeks to address this critical gap by conducting a comprehensive analysis of raw transactions sourced from Uniswap, a central decentralized exchange (DEX) within the DeFi ecosystem. The dataset encompasses an extensive collection of over 50 million transactions from both L1 and L2 networks. Additionally, we have curated a wide-ranging repository of daily indices derived from transaction trading data across prominent blockchain networks, including Ethereum, Optimism, Arbitrum, and Polygon. These indices shed light on crucial network dynamics, such as adoption trends, evaluations of scalability, decentralization metrics, wealth distribution patterns, and other key aspects of the DeFi landscape. This rich dataset serves as an invaluable tool, enabling researchers to dissect the complex interplay between DeFi and Layer 2 solutions, thus enhancing our collective understanding of this rapidly evolving ecosystem. Its notable contribution to the data science pipeline includes the implementation of a flexible, open-source Python framework, enabling the dynamic calculation of decentralization indices, customizable to specific research requirements. This adaptability makes the dataset particularly suitable for advanced machine learning applications, including deep learning, thereby solidifying its role as a critical asset in shaping Blockchain as the foundational infrastructure for the intelligent Web3 ecosystem.

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Section: Developing Advanced Blockchain Transaction Indicesmentioning

confidence: 99%

Uniswap Daily Transaction Indices by Network

Chemaya,

Cong,

Joergensen

et al. 2023

Preprint

View full text Add to dashboard Cite

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“…Questions. Building on blockchain DAO's economic performance indicators, such as governance tokens' return of investment (ROI) [38,40,64,68], transaction fees [37,69], and market exchange decentralization [1,66], future studies could explore whether there exists a correlation between the discussion intensity, sentiment scores within blockchain governance communities or DAOs, and economic performance metrics. Understanding how community sentiment and engagement relate to economic success could provide valuable insights for stakeholders and decisionmakers.…”

Section: Researchmentioning

confidence: 99%

Decoding Social Sentiment in DAO: A Comparative Analysis of Blockchain Governance Communities

Quan,

Wu,

Deng

et al. 2023

Preprint

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Blockchain technology is leading a revolutionary transformation across diverse industries, with effective governance standing as a critical determinant for the success and sustainability of blockchain projects. Community forums, pivotal in engaging decentralized autonomous organizations (DAOs), wield a substantial impact on blockchain governance decisions. Concurrently, Natural Language Processing (NLP), particularly sentiment analysis, provides powerful insights from textual data. While prior research has explored the potential of NLP tools in social media sentiment analysis, a gap persists in understanding the sentiment landscape of blockchain governance communities. The evolving discourse and sentiment dynamics on the forums of top DAOs remain largely unknown. This paper delves deep into the evolving discourse and sentiment dynamics on the public forums of leading DeFi projects—Aave, Uniswap, Curve Dao, Aragon, Yearn.finance, Merit Circle, and Balancer—placing a primary focus on discussions related to governance issues. Despite differing activity patterns, participants across these decentralized communities consistently express positive sentiments in their Discord discussions, indicating optimism towards governance decisions. Additionally, our research suggests a potential interplay between discussion intensity and sentiment dynamics, indicating that higher discussion volumes may contribute to more stable and positive emotions. The insights gained from this study are valuable for decision-makers in blockchain governance, underscoring the pivotal role of sentiment analysis in interpreting community emotions and its evolving impact on the landscape of blockchain governance. This research significantly contributes to the interdisciplinary exploration of the intersection of blockchain and society, with a specific emphasis on the decentralized blockchain governance ecosystem. We provide our data and code for replicability as open access on GitHub.

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