Abstract
Non-Fungible Tokens (NFTs) are blockchain-based digital assets that authenticate the ownership and provenance of unique items, such as art, music, and virtual real estate. While the NFT market experienced rapid growth during the COVID-19 pandemic, it declined before gaining renewed momentum. Recent research highlights the influence of macroeconomic factors, including inflation, geopolitical instability, technological innovation, public health crises, and cryptocurrency dynamics, on NFT price movements. However, there is a significant gap in systemic, theory-driven analysis that explains the complex interdependencies shaping these price fluctuations. This study addresses this gap by employing systems thinking tools, specifically Behavior Over Time (BOT) graphs and Causal Loop Diagrams (CLDs), to explore the dynamic interactions between macroeconomic variables and NFT prices. The methodology involves defining key economic and technological factors as interrelated variables and mapping their causal relationships to uncover patterns and feedback loops within the system. BOT graphs visually trace the evolution of key indicators over time, while CLDs identify reinforcing and balancing loops that contribute to market volatility or stability. Preliminary findings suggest that NFTs are influenced by both direct and indirect macroeconomic forces, revealing systemic behaviors that are often overlooked in conventional financial models. By applying a systems theory approach, this research provides a novel analytical framework for understanding the NFT ecosystem. The study contributes to the limited academic literature on NFTs and offers valuable insights for researchers, policymakers, and investors seeking to navigate the uncertainties of digital asset markets with a more holistic and informed perspective.