Investor attention and GameFi returns: A transfer entropy analysis

GameFi, as a significant innovation of the metaverse, is receiving widespread attention. GameFi represents the convergence of gaming and finance within a blockchain-powered environment, utilizing non-fungible tokens (NFTs) and smart contracts. We investigate the relationship between investor attention and GameFi returns. Empirical results reveal that compared with Google Trends, the number of tweets on Twitter serves as a desired proxy for investor attention, with its influence more pronounced for lower liquidity GameFi tokens. Findings are robust to alternative specifications of our applied transfer entropy methodology.