Price in the Player? Testing Performance-Based Mispricing in NFT Fantasy Sports Markets
Session Title
Sports Betting: Strategy & Investment
Presentation Type
Paper Presentation
Start Date
28-5-2026 12:00 AM
Abstract
This study examines behavioral pricing patterns in blockchain-based fantasy sports markets by analyzing non-fungible token (NFT) sales on Sorare.com, a decentralized platform where users buy, sell, and compete with digital player cards. Each NFT corresponds to a licensed professional soccer player and is traded in a secondary market on Ethereum-based infrastructure. We construct a unique dataset by linking player performance data with transaction-level NFT sales across multiple seasons, focusing on the Rare and Super Rare card tiers. To isolate the effects of recent performance on secondary market prices, we develop a matching algorithm that connects NFT transaction records to individual card IDs based on sale timestamps and card-specific metadata. This structure allows us to test whether player NFTs are priced efficiently, or whether recent on-field success leads to temporary price inflation consistent with hot hand bias. Our results align with the presence of performance-chasing or hot hand pricing, where recent form leads to a temporary inflation of perceived value. Our framework builds on prior work examining the hot hand hypothesis in traditional sports betting markets—including studies by Camerer (1989), Brown and Sauer (1993), and Paul and Weinbach (2005, 2011, 2014)—and extends this behavioral lens to tokenized digital assets.
Price in the Player? Testing Performance-Based Mispricing in NFT Fantasy Sports Markets
This study examines behavioral pricing patterns in blockchain-based fantasy sports markets by analyzing non-fungible token (NFT) sales on Sorare.com, a decentralized platform where users buy, sell, and compete with digital player cards. Each NFT corresponds to a licensed professional soccer player and is traded in a secondary market on Ethereum-based infrastructure. We construct a unique dataset by linking player performance data with transaction-level NFT sales across multiple seasons, focusing on the Rare and Super Rare card tiers. To isolate the effects of recent performance on secondary market prices, we develop a matching algorithm that connects NFT transaction records to individual card IDs based on sale timestamps and card-specific metadata. This structure allows us to test whether player NFTs are priced efficiently, or whether recent on-field success leads to temporary price inflation consistent with hot hand bias. Our results align with the presence of performance-chasing or hot hand pricing, where recent form leads to a temporary inflation of perceived value. Our framework builds on prior work examining the hot hand hypothesis in traditional sports betting markets—including studies by Camerer (1989), Brown and Sauer (1993), and Paul and Weinbach (2005, 2011, 2014)—and extends this behavioral lens to tokenized digital assets.