Did COVID-19 Pandemic Influence the Ether Cryptocurrency Market? Perception and Analysis

Abstract

In recent days, DeFi tokens have gained popularity as an investment option in the pandemic period and has gained a significant amount of investment. Cryptocurrency trading is a type of DeFi that has gained a lot of attention in the global market. The value of such currencies is increasing on a daily basis and peaked during the pandemic. One of these significant cryptocurrencies is the ether cryptocurrency, which ranks second only to the bitcoin cryptocurrency in terms of the value of a single coin. The ARIMA model will be used to forecast the price of ether. In this paper, an hourly forecast and a short term period forecast are performed. The forecast clearly shows that the ARIMA model performed better on log transformed data than on the original data. It’s also evident that COVID-19 pandemic has also aided the growth of ethereum when compared to previous year.