Influential Risk Spreaders and Their Contribution to the Systemic Risk in the Cryptocurrency Network

This paper studies the risk spreading ability of cryptocurrencies and their contribution to the systemic risk during the period from 2018 to 2022. Three different network centrality approaches are employed to measure the risk spreading ability of cryptocurrencies both in breadth and depth, and from perspectives of local and global information. We also measure the contribution of cryptocurrencies to the systemic risk via ∆CoVaR, and detect what contributes to the systemic risk. Our findings show that cryptocurrencies with larger risk spreading ability, as well as others that experience decline in prices or high turnover, contribute more to the systemic risk