Price Prediction of Non-Fungible Tokens (NFTs) using Data Mining Prediction Algorithm

Abstract

Non-Fungible Tokens (NFTs) experienced a peak of popularity in Indonesia through content created and sold by an account at OpenSea called Ghozali Everyday in early 2022. Ghozali reportedly earned ± Rp. 1.3 billion from the content he has created. This sparked the curiosity of the Indonesian people to imitate what Ghozali Everyday did in the hope of getting similar benefits. The market price of NFTs is the same as stock prices, which will fluctuate depending on the price of the cryptocurrency because these NFTs can generally be purchased with the cryptocurrency, namely Ethereum. This research was conducted to predict the price of NFTs using the Data Mining Prediction Algorithm. Five algorithms are compared to find the best algorithm: Deep Learning, Linear Regression, Neural Networks, Support Vector Machines, and Generalized Linear Model. The methodology used is Knowledge Discovery in Databases. The NFTs price dataset is taken from the page coinmarketcap.com from 16 November 2021 to 16 November 2022. The results show that the best Data Mining Prediction Algorithm is a Neural Network with a value of The lowest Root Mean Square Error (RMSE) compared to other algorithms, namely 83.617 +/- 18.853 (micro average: 85.590 +/- 0.000). After the Neural Network is used in the Dataset, the graph results show no significant difference between the Closing Price and the Predicted Price.