Dynamic Interdependence between NFTs, DeFi Tokens and ‎Sustainable Assets Across Geopolitical Crises

  • Authors

    • Samoon Khan Research Scholar at Mittal School of Business, Lovely Professional University, Phagwara, ‎Punjab, India https://orcid.org/0000-0001-6805-2470
    • Dr. Syed Hassan Imam Gardezi Executive Director and Board Member Union Investments L.L.C.‎, Ras Al Khaimah, United Arab Emirates
    • Prof. Rupinder Katoch Professor at Mittal School of Business, Lovely Professional University, Phagwara, Punjab, ‎India
    https://doi.org/10.14419/q6a30k28

    Received date: December 27, 2025

    Accepted date: January 19, 2026

    Published date: January 26, 2026

  • Wavelet Coherence; DeFi Tokens; NFTs; Clean Energy; Geopolitical Crises

  • Abstract

    This study examines the dynamic interdependence between Clean Energy indices, AI Robotics ‎Index, and selected NFT and DeFi tokens across three major geopolitical crises: COVID-19 ‎pandemic (January 2020–April 2021), Russia-Ukraine war (February 2022–December 2022), ‎and Iran-Israel conflict (October 2023–June 2024). Employing continuous wavelet transform, ‎wavelet coherence, and partial wavelet coherence techniques, we decompose relationships ‎across short-term, medium-term, and long-term horizons using daily data from Bloomberg. ‎Descriptive statistics reveal fundamental differences between sustainable investments and ‎digital assets: Clean Energy (mean: 0.0008, variance: 0.0004) and AI Index (mean: 0.0003, ‎variance: 0.0002) demonstrate positive returns with low volatility, while NFT and DeFi tokens ‎exhibit negative average returns and substantially higher volatility, with AAVE showing ‎extreme kurtosis (773.27) and variance (0.0167). Wavelet coherence analysis reveals crisis-‎dependent and scale-specific patterns. During COVID-19, only short-term and medium-term ‎coherence emerged, indicating transitory speculative relationships. The Russia-Ukraine war ‎marked a structural shift, with AAVE demonstrating long-term coherence with Clean Energy, ‎suggesting deeper market integration driven by energy market disruptions. The Iran-Israel ‎conflict exhibited the most complex patterns, with broader long-term coherence across ENJ ‎Coin, Theta, Synthetix, Maker, and SUPERf, indicating structural convergence between energy ‎transition narratives and selected DeFi/NFT projects. These findings demonstrate that ‎NFT/DeFi-sustainable investment relationships are crisis-dependent, scale-specific, and ‎selectively integrative, with significant implications for portfolio diversification strategies and ‎systemic risk monitoring during geopolitical crises‎.

  • References

    1. Aguiar-Conraria, L., & Soares, M. J. (2014). The continuous wavelet transform: Moving beyond uni- and bivariate analysis. Journal of Economic Surveys, 28(2), 344-375. https://doi.org/10.1111/joes.12012.
    2. Ahmad, W., Sadorsky, P., & Sharma, A. (2018). Optimal hedge ratios for clean energy equities. Economic Modelling, 72, 278-295. https://doi.org/10.1016/j.econmod.2018.02.008.
    3. Akan, T., Okay, N., & Akan, B. (2024). Asymmetric impact of geopolitical risk on financial markets: A cross-country analysis. International Eco-nomics, 177, 100456. https://doi.org/10.1016/j.inteco.2023.100456.
    4. Ante, L. (2023). The non-fungible token (NFT) market and its relationship with Bitcoin and Ethereum. FinTech, 2(1), 216-224. https://doi.org/10.3390/fintech1030017.
    5. Baker, S. R., Bloom, N., Davis, S. J., Kost, K., Sammon, M., & Viratyosin, T. (2020). The unprecedented stock market reaction to COVID-19. Review of Asset Pricing Studies, 10(4), 742-758. https://doi.org/10.1093/rapstu/raaa008.
    6. Baur, D. G., & Lucey, B. M. (2010). Is gold a hedge or a safe haven? An analysis of stocks, bonds and gold. Financial Review, 45(2), 217-229. https://doi.org/10.1111/j.1540-6288.2010.00244.x.
    7. Baur, D. G., & McDermott, T. K. (2010). Is gold a safe haven? International evidence. Journal of Banking & Finance, 34(8), 1886-1898. https://doi.org/10.1016/j.jbankfin.2009.12.008.
    8. Bondia, R., Ghosh, S., & Kanjilal, K. (2016). International crude oil prices and the stock prices of clean energy and technology companies: Evi-dence from non-linear cointegration tests with unknown structural breaks. Energy, 101, 558-565. https://doi.org/10.1016/j.energy.2016.02.031.
    9. Bouri, E., Cepni, O., Gabauer, D., & Gupta, R. (2021). Return connectedness across asset classes around the COVID-19 outbreak. International Review of Financial Analysis, 73, 101646. https://doi.org/10.1016/j.irfa.2020.101646.
    10. Bouri, E., Gupta, R., Tiwari, A. K., & Roubaud, D. (2017). Does Bitcoin hedge global uncertainty? Evidence from wavelet-based quantile-in-quantile regressions. Finance Research Letters, 23, 87-95. https://doi.org/10.1016/j.frl.2017.02.009.
    11. Bouri, E., Shahzad, S. J. H., & Roubaud, D. (2020). Cryptocurrencies as hedges and safe-havens for US equity sectors. Quarterly Review of Eco-nomics and Finance, 75, 294-307. https://doi.org/10.1016/j.qref.2019.05.001.
    12. Chen, Y., & Bellavitis, C. (2020). Blockchain disruption and decentralized finance: The rise of decentralized business models. Journal of Business Venturing Insights, 13, e00151. https://doi.org/10.1016/j.jbvi.2019.e00151.
    13. Chohan, U. W. (2021). Non-fungible tokens: Blockchains, scarcity, and value. Critical Blockchain Research Initiative (CBRI) Working Pa-pers. https://doi.org/10.2139/ssrn.3822743.
    14. Chohan, U. W. (2021). Non-fungible tokens: Blockchains, scarcity, and value. Critical Blockchain Research Initiative (CBRI) Working Pa-pers. https://doi.org/10.2139/ssrn.3822743.
    15. Christoffersen, P., Errunza, V., Jacobs, K., & Langlois, H. (2012). Is the potential for international diversification disappearing? A dynamic copula approach. Review of Financial Studies, 25(12), 3711-3751. https://doi.org/10.1093/rfs/hhs104.
    16. Conlon, T., & McGee, R. (2020). Safe haven or risky hazard? Bitcoin during the COVID-19 bear market. Finance Research Letters, 35, 101607. https://doi.org/10.1016/j.frl.2020.101607.
    17. Conlon, T., Corbet, S., & McGee, R. J. (2020). Are cryptocurrencies a safe haven for equity markets? An international perspective from the COVID-19 pandemic. Research in International Business and Finance, 54, 101248. https://doi.org/10.1016/j.ribaf.2020.101248.
    18. Corbet, S., Larkin, C., & Lucey, B. (2019). The contagion effects of the COVID-19 pandemic: Evidence from gold and cryptocurrencies. Finance Research Letters, 35, 101554. https://doi.org/10.1016/j.frl.2020.101554.
    19. Corbet, S., Lucey, B., Urquhart, A., & Yarovaya, L. (2018). Cryptocurrencies as a financial asset: A systematic analysis. International Review of Financial Analysis, 62, 182-199. https://doi.org/10.1016/j.irfa.2018.09.003.
    20. Dinh, T. N., & Thai, M. T. (2018). AI and blockchain: A disruptive integration. Computer, 51(9), 48-53. https://doi.org/10.1109/MC.2018.3620971.
    21. Dowling, M. (2022). Is non-fungible token pricing driven by cryptocurrencies? Finance Research Letters, 44, 102097. https://doi.org/10.1016/j.frl.2021.102097.
    22. Goodell, J. W. (2020). COVID-19 and finance: Agendas for future research. Finance Research Letters, 35, 101512. https://doi.org/10.1016/j.frl.2020.101512.
    23. Goodell, J. W., & Goutte, S. (2021). Co-movement of COVID-19 and Bitcoin: Evidence from wavelet coherence analysis. Finance Research Let-ters, 38, 101625. https://doi.org/10.1016/j.frl.2020.101625.
    24. Grinsted, A., Moore, J. C., & Jevrejeva, S. (2004). Application of the cross wavelet transform and wavelet coherence to geophysical time se-ries. Nonlinear Processes in Geophysics, 11(5/6), 561-566. https://doi.org/10.5194/npg-11-561-2004.
    25. Ji, Q., Zhang, D., & Zhao, Y. (2020). Searching for safe-haven assets during the COVID-19 pandemic. International Review of Financial Analysis, 71, 101526. https://doi.org/10.1016/j.irfa.2020.101526.
    26. Jiang, S., Li, Y., Lu, Q., Hong, Y., Guan, D., Xiong, Y., & Wang, S. (2022). Policy assessments for the carbon emission flows and sustainability of Bitcoin blockchain operation in China. Nature Communications, 13, 1938. https://doi.org/10.1038/s41467-021-22256-3.
    27. Jiang, Y., Lie, J., Wang, J., & Mu, J. (2021). Revisiting the roles of cryptocurrencies in stock markets: A quantile coherency perspective. Economic Modelling, 95, 21-34. https://doi.org/10.1016/j.econmod.2020.12.002.
    28. Karim, S., Lucey, B. M., Naeem, M. A., & Uddin, G. S. (2022a). Examining the interrelatedness of NFTs, DeFi tokens and cryptocurren-cies. Finance Research Letters, 47, 102696. https://doi.org/10.1016/j.frl.2022.102696.
    29. Karim, S., Naeem, M. A., Mirza, N., & Paule-Vianez, J. (2022b). Quantifying the hedge and safe-haven properties of bond markets for cryptocur-rency indices. Journal of Risk Finance, 23(2), 191-205. https://doi.org/10.1108/JRF-09-2021-0158.
    30. Kristoufek, L. (2020). Grandpa, grandpa, tell me the one about Bitcoin being a safe haven: Evidence from the COVID-19 pandemics. Frontiers in Physics, 8, 296. https://doi.org/10.3389/fphy.2020.00296.
    31. Kumari, V., Kumar, G., & Gupta, M. (2023). Exploring the dynamic relationship between cryptocurrency and commodity markets during the Ukrainian invasion. Research in International Business and Finance, 65, 101952. https://doi.org/10.1016/j.ribaf.2023.101952.
    32. Madaleno, M., & Pinho, C. (2012). International stock market indices comovements: A new look. International Journal of Finance & Economics, 17(1), 89-102. https://doi.org/10.1002/ijfe.448.
    33. Mariana, C. D., Ekaputra, I. A., & Husodo, Z. A. (2021). Are Bitcoin and Ethereum safe-havens for stocks during the COVID-19 pandem-ic? Finance Research Letters, 38, 101798. https://doi.org/10.1016/j.frl.2020.101798.
    34. Markowitz, H. (1952). Portfolio selection. Journal of Finance, 7(1), 77-91. https://doi.org/10.2307/2975974.
    35. Mensi, W., Al-Yahyaee, K. H., & Kang, S. H. (2020). Time-frequency co-movements between green bonds and traditional energy markets. Energy Economics, 92, 104937. https://doi.org/10.1016/j.eneco.2020.104937.
    36. Mensi, W., Rehman, M. U., Maitra, D., Al-Yahyaee, K. H., & Vo, X. V. (2023). Oil, natural gas and BRICS stock markets: Evidence of systemic risks and co-movements using wavelet-based approaches. Resources Policy, 80, 103177.
    37. Mnif, E., Jarboui, A., & Mouakhar, K. (2020). How the cryptocurrency market has performed during COVID-19? A multifractal analysis. Finance Research Letters, 36, 101647. https://doi.org/10.1016/j.frl.2020.101647.
    38. Nadini, M., Alessandretti, L., Di Giacinto, F., Martino, M., Aiello, L. M., & Baronchelli, A. (2021). Mapping the NFT revolution: Market trends, trade networks, and visual features. Scientific Reports, 11, 20902. https://doi.org/10.1038/s41598-021-00053-8.
    39. Naeem, M. A., Bouri, E., Peng, Z., Shahzad, S. J. H., & Vo, X. V. (2021). Asymmetric efficiency of cryptocurrencies during COVID-19. Physica A: Statistical Mechanics and its Applications, 565, 125562. https://doi.org/10.1016/j.physa.2020.125562.
    40. Naeem, M. A., Rao, A., Suleman, M. T., & Gull, A. A. (2022). Comparative efficiency of green and conventional bonds pre- and during COVID-19: An asymmetric multifractal detrended fluctuation analysis. Energy Policy, 153, 112285. https://doi.org/10.1016/j.enpol.2021.112285.
    41. Pham, L. (2019). Is it risky to go green? A volatility analysis of the green bond market. Journal of Sustainable Finance & Investment, 6(4), 263-291. https://doi.org/10.1080/20430795.2016.1237244.
    42. Qarnain, S. S., Muthuvel, S., & Bathrinath, S. (2020). Review on government action plans to reduce energy consumption in buildings amid COVID-19 pandemic outbreak. Materials Today: Proceedings, 33, 3467-3471. https://doi.org/10.1016/j.matpr.2020.05.653.
    43. Reboredo, J. C., Quintela, M., & Otero, L. A. (2017). Do investors pay a premium for going green? Evidence from alternative energy mutual funds. Renewable and Sustainable Energy Reviews, 73, 512-520. https://doi.org/10.1016/j.rser.2017.01.158.
    44. Ren, B., & Lucey, B. (2022). A clean, green haven?—Examining the relationship between clean energy, clean and dirty cryptocurrencies. Energy Economics, 109, 105951. https://doi.org/10.1016/j.eneco.2022.105951.
    45. Rua, A., & Nunes, L. C. (2009). International comovement of stock market returns: A wavelet analysis. Journal of Empirical Finance, 16(4), 632-639. https://doi.org/10.1016/j.jempfin.2009.02.002.
    46. Salah, K., Rehman, M. H. U., Nizamuddin, N., & Al-Fuqaha, A. (2019). Blockchain for AI: Review and open research challenges. IEEE Access, 7, 10127-10149. https://doi.org/10.1109/ACCESS.2018.2890507.
    47. Sarkodie, S. A., Ahmed, M. Y., & Owusu, P. A. (2022). COVID-19 pandemic improves market signals of cryptocurrencies–evidence from Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Finance Research Letters, 44, 102049. https://doi.org/10.1016/j.frl.2021.102049.
    48. Shahzad, S. J. H., Bouri, E., Ahmad, T., Naeem, M. A., & Vo, X. V. (2021). The pricing of bad contagion in cryptocurrencies: A four-factor pricing model. Finance Research Letters, 41, 101797. https://doi.org/10.1016/j.frl.2020.101797.
    49. Sharif, A., Aloui, C., & Yarovaya, L. (2020). COVID-19 pandemic, oil prices, stock market, geopolitical risk and policy uncertainty nexus in the US economy: Fresh evidence from the wavelet-based approach. International Review of Financial Analysis, 70, 101496. https://doi.org/10.1016/j.irfa.2020.101496.
    50. Sovacool, B. K., Bazilian, M., Griffiths, S., Kim, J., Foley, A., & Rooney, D. (2020). Decarbonizing the food and beverages industry: A critical and systematic review of developments, sociotechnical systems and policy options. Renewable and Sustainable Energy Reviews, 143, 110856. https://doi.org/10.1016/j.rser.2021.110856.
    51. Torrence, C., & Compo, G. P. (1998). A practical guide to wavelet analysis. Bulletin of the American Meteorological Society, 79(1), 61-78. https://doi.org/10.1175/1520-0477(1998)079<0061:APGTWA>2.0.CO;2.
    52. Umar, M., Mirza, N., Hasnaoui, J. A., & Rochetti, C. (2023). The impact of the Russia-Ukraine conflict on energy firms: A capital market perspec-tive. Journal of Behavioral and Experimental Finance, 37, 100785.
    53. Umar, Z., Polat, O., Choi, S. Y., & Teplova, T. (2022). The impact of the Russia-Ukraine conflict on the connectedness of financial mar-kets. Finance Research Letters, 48, 102976. https://doi.org/10.1016/j.frl.2022.102976.
    54. Urquhart, A., & Zhang, H. (2019). Is Bitcoin a hedge or safe haven for currencies? An intraday analysis. International Review of Financial Analysis, 63, 49-57. https://doi.org/10.1016/j.irfa.2019.02.009.
    55. Vacha, L., & Barunik, J. (2012). Co-movement of energy commodities revisited: Evidence from wavelet coherence analysis. Energy Economics, 34(1), 241-247. https://doi.org/10.1016/j.eneco.2011.10.007.
    56. Yousaf, I., Patel, R., & Yarovaya, L. (2022). The reaction of G20+ stock markets to the Russia–Ukraine conflict "black-swan" event: Evidence from event study approach. Journal of Behavioral and Experimental Finance, 35, 100723. https://doi.org/10.1016/j.jbef.2022.100723.
    57. Zetzsche, D. A., Arner, D. W., & Buckley, R. P. (2020). Decentralized finance. Journal of Financial Regulation, 6(2), 172-203. https://doi.org/10.1093/jfr/fjaa010.
    58. Zhang, D., Hu, M., & Ji, Q. (2020). Financial markets under the global pandemic of COVID-19. Finance Research Letters, 36, 101528. https://doi.org/10.1016/j.frl.2020.101528.

  • Downloads

  • How to Cite

    Khan, S. ., Gardezi , D. S. H. I. ., & Katoch, P. R. (2026). Dynamic Interdependence between NFTs, DeFi Tokens and ‎Sustainable Assets Across Geopolitical Crises. International Journal of Accounting and Economics Studies, 13(1), 471-479. https://doi.org/10.14419/q6a30k28