Commonality in Systemic Risk Across Cryptocurrencies

The study investigates the commonality across thirty-four cryptocurrencies during a stressed environment. Though pegged with assets, the study found a higher systemic risk for gold-backed cryptocurrencies. We examined a common trend in systemic risk across cryptocurrency groups and found substantial commonality between the group comprising of NFTs and DEFIs, and gold-backed cryptocurrencies. From a stability perspective, the study advises investors against hedging cryptocurrencies backed with assets and those sharing complementary characteristics