Younis, IjazGupta, HimaniDu, Anna MinShah, Waheed UllahHanif, Waqas2024-09-042024-09-042024-060275-5319http://hdl.handle.net/10400.1/25836Decentralized finance (DeFi) has become of significant interest for investors in both the financial and digital sectors. We use a time -varying parameter vector autoregression (TVP-VAR) approach to estimate the static and dynamic connections between and within DeFi, G7 banking, and equity markets. We focus on critical events such as the COVID-19 pandemic, the cryptocurrency bubble, and the Russia -Ukraine conflict. The results highlight interconnectedness and significant spillovers within and between the markets, especially during the COVID-19 pandemic. Notably, there were significant spillover effects from the G7 banking and equity markets to Japan and DeFi assets. The findings demonstrate a robust connection between DeFi platforms, G7 banking, and stock markets throughout these tumultuous periods. Policymakers, investors, and entrepreneurs are recommended to keep a close eye on changes in traditional banking and equity markets to adjust the risk of DeFi assets.engDeFiG7 banks and equity marketsCrypto bubbleUkrainianWarCOVID-19journal article10.1016/j.ribaf.2024.102405