We study anchoring effects and loss aversion in the Non-Fungible Token market using comprehensive user-auction data from CryptoPunks. Using the last period’s transaction price as the reference point, we separately measure anchoring effects and loss aversion for sellers and bidders. Our findings reveal that both sellers and bidders exhibit loss aversion, though the magnitude of loss aversion is significantly smaller for bidders. The analysis also confirms the presence of anchoring effects in both groups, with bidders displaying weaker effects than sellers, possibly due to signaling dynamics. Furthermore, we show that negotiations between sellers and bidders result in an intermediate level of loss aversion, falling between their individual measured levels. We also test whether experience influences loss aversion within both groups. For sellers, greater experience mitigates loss aversion, whereas for bidders, the results are mixed, with some evidence suggesting that experience may even increase their loss aversion in the NFT market.
