Analysis: ENS domain name has become the “most perfect NFT collection” in the bear market?

The once-mighty OpenSea’s trading volume in August hit a new monthly low in the past year. Blue-chip liquidity such as BAYC, CryptoPunks, Azuki, etc., which have provoked the lead, have been declining after a large-scale liquidation crisis, and the daily transaction count has already degraded to In the single digits, however, in this cold winter, domain names, one of the most valuable assets in the history of the Web, are thriving at this time. The OG-type target ENS domain name in the NFT industry quickly entered the transaction rankings of the trading platform. Nick Tomaino, founding partner of venture capital firm 1confirmation, changed his Twitter nickname to “1492.eth” on September 5, and said that ENS is the perfect NFT collection.

Analysis: ENS domain name has become the "most perfect NFT collection" in the bear market?

The ENS domain name is the most held target in the NFT field, and it is not one of them. According to official data, a total of 541,000 users have registered a total of 2.17 million ENS domain names. Anyone can register or buy a domain name with a term of their own from the secondary market according to their own preferences, and the story behind a good name, the brand it represents, etc., will quickly occupy the minds of other users after it has been widely disseminated. . Over time, when a person utters the name, the narrative behind it and the brand value it contains will unfold.

However, it is often difficult for a domain name to form value, because most characters have no practical practical significance, so ENS domain names are just a token or symbol that replaces a long list of bloated addresses for most users.However, some eagle-eyed investors have found that some ENS domain names with special significance and limited number of limited conditions can also have speculative value. When some users choose the ENS domain name, they will choose according to the existing and widely spread things, and register/purchase a domain name of a large company brand that already exists in reality, such as: telsa.eth, in the hope that the company will enter the Web3 A potential purchase from another investor who is willing to pay a higher price after buying the domain name. However, such domain names are often squatted by others a few years ago and are firmly in their hands. Before reaching a super high psychological price, no one will easily change hands.

Create meaning without meaning

ENS domain names can be registered with a wide range of character sets, including numbers, letters, emoticons, special symbols, and their mixtures. The degree of differentiation and scarcity under the same type of character set is constructed.Difference and scarcity create something to speculate about.

According to ENS.Vision data, the current ENS domain name categories can be divided into the following categories: (ranked according to transaction volume, only the total transaction volume exceeds 1000 ETH)

  1. 10k Club: 4-digit domain name 0000-9999

It is far ahead in the transaction volume of all categories. The total transaction volume has exceeded 17,000 ETH, and the floor price has exceeded 2 ETH. It is the most popular ENS domain name category recently.

  1. 999 Club: 3-digit domain name 000-999

The most expensive ENS domain name category, with a floor price of more than 30 ETH.

  1. 3 Letters: 3-letter domain name
  2. 100k Club: 5-digit domain name 00000-99999
  3. Pre-Punk Club: 78,813 domains minted before Crypto Punks
  4. Arabic 999 Club: Arabic 3-digit domain name 000-999
  5. English Nouns: The total number of English nouns is 3103
  6. 4 Letter Dictionary: 4 English letter domain names total 4001
  7. English Verbs: The total number of English verbs is 6127
  8. 5 Letter Dictionary: 5 English letter domain names total 5760
  9. 3 Digit Palindromes: Palindromes of 3-digit domain names (both positive and negative readings are the same) Total amount 100 Floor price 40 ETH
  10. Surnames: Surnames total 4427

In OpenSea’s ENS domain name transaction volume with a total of over 55,000 ETH, the two categories of 999 Club and 10k Club account for nearly 1/2 of the transaction volume, and the transaction volume of 10k Club in the past 24 hours has exceeded 350 ETH. , surpassing BAYC, CryptoPunks and other blue chips to top the list.

The paper hand rate is low, and it has the potential to become a blue chip

In the real-time data on the afternoon of September 5th, the number of real-time pending orders of 999 Club (total 999) was 114, and the order rate was 11.4%. Among them, there were only 4 pending orders that deviate from the floor price (floor price 30.5 ETH) within 10%. There are 9 pending orders with a deviation within 20% of the floor price, and 27 pending orders with a deviation within 50% of the floor price. If the pending order that deviates from the floor price within 50% is regarded as a paper hand, the paper hand rate is about 2.7%.

Let’s take a look at the 10k Club (total amount of 10,000) with 1,481 real-time pending orders, with a pending order rate of 14.81%. Among them, there are 32 pending orders that deviate from the floor price (floor price 2.1 ETH) within 10%, and those that deviate from the floor price within 20%. There are 91 pending orders, 261 pending orders that deviate within 50% of the floor price, and more than 80% of the pending orders are more than 50% deviated from the floor price.Keeping the above conditions, 10k Club’s paper hand rate is about 2.61%.

Under the same conditions (pending orders that deviate from the floor price within 50% are defined as paper lot), BAYC’s paper lot rate is about 2.09%, CryptoPunks is about 2%, Azuki is about 0.9%, CloneX is about 1.1%, and Doodles is about 0.95% . It can be seen that among the top NFT blue chips listed by BendDAO as collateral, the paper hand rate is mostly maintained at about 2% or below. Although 999 Club and 10k Club are slightly higher, it must be in Holder’s mind that it has become a blue chip potential.

ENS Domain Name Narrative

  1. PFP is the avatar, and ENS is the name. ENS becomes a personal label, which is convenient for memory, transfer, receiving airdrops, etc. One of the best recent examples is when 1confirmation founding partner Nick Tomaino announced his purchase of 1492.eth and changed his Twitter name. 1492, representing Columbus’ discovery of the New World in 1492.
  2. Incorporate ENS domains into the “universe of apes”. When the land of Othersdie Ape Universe came out, the discussion about the land value was in full swing. Some started from resources, some believed that the central island was the most valuable, and there was also a voice that put the number of BAYC and the number of Otherside land. Combined with the ENS digital domain name, it realizes the sovereignty of personal identity data, “PFP+LAND+ENS”, that is, where does an ape with a name and look like live in the ape universe. In the future, when the ape universe is fully unified, the status can be viewed in terms of numbers, and the quantity/scarcity of NFTs will be transformed into the singularity of numbers. Talking about a number in the future, like 3399, means knowing that person owns 3399.eth, BAYC #3399, and Otherside #3399.

    Of course, there may also be other Metaverse or blue chips, such as CryptoPunks top NFT collector Punk 6529, which uses 6529 as its social business card such as Twitter and Website. When it comes to 6529, there is currently only Punk 6529.

  3. Digital domain names aspire to replicate the success of Web2 history in Web3. 360.com, once held by mobile communication leader Vodafone, was later acquired by Qihoo 360 at a cost of US$17 million, which was the most expensive transaction price for a domain name in history; and in Juming.com’s recent 4-digit auction records for .com, it can be found that The price ranges from tens of thousands to hundreds of thousands of RMB.

However, there are also some criticisms about digital domain names, and many people think that this is just an artificial speculative hype. Among the Top 50 holders of 10k Club, the number of holdings reaches 2113, that is, about 1.2% (50/4118) holders hold 21.13% (2113/10000) domain names; in the Top 50 of 999 Club Among the holders, there are 465 domain names, that is, about 10.3% (50/485) holders hold 46.5% (465/999) domain names, of which 0xe8…1bb0 holds even more 127 three-digit domain names.

In addition, digital domain names are much inferior to English domain names or other combined domain names in terms of content expression. The meaning of character sets is given by people, and they are widely circulated in the subsequent communication to form a consensus. . Numbers are simple and easy to remember, but the content they can carry is relatively insufficient and vague. The cultural expression ability of 10 numbers from 0 to 9 connected in series is far inferior to that of az, which consists of 26 letters. In addition, from the perspective of transliteration/dictation, it may be easier to speak numbers in the Chinese context. A number is a syllable, but if you switch to spoken English, a number is a word.

Referring to or addressing people by numbers is also strange, since in real culture calling their numbers instead of their names often happens to prison inmates.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/analysis-ens-domain-name-has-become-the-most-perfect-nft-collection-in-the-bear-market/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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