- The market value of ENS has risen by 114% in the last week, and the trading volume of ENS in the past three weeks is greater than the sum of all previous trading volumes. Over a million domains are held by 389,000 unique addresses, with an average of around 3 per address.
- After April 26, the high-price transaction of digital domain names triggered a “digital war” and brought three waves. Popular ENS domain names have the same characteristics, such as three/four-digit domain names, “00X.eth”, “X00.eth” formats, consecutive numbers, and many other features.
- ENS domain names of well-known trademarks and IPs will gradually return to their actual value, and there is still room for value-added Web3 domain names in the future.
- Compared with Web2 domain names, ENS domain names combine a variety of practicalities and DAO’s innovative gameplay.
ENS is a domain name management system on Ethereum and an incubation project of the Ethereum Foundation. Its main function is to provide users with ENS domain names in the “XXX.eth” format to bind addresses. The project was established in 2017, and on the occasion of its fifth anniversary, the market once again set off a wave of cybersquatting of ENS domain names.
In the past week, with the substantial increase in the number of ENS registrations, the popularity of the ENS domain name market has also ushered in an explosive rise. This week, the market value of ENS reached a new high of $47,677,198, an increase of 114% compared to its market value on April 24. At the same time, the trading volume of ENS started to show an upward trend on April 26, and the upward trend continued until May 2, and hit a new one-day high of $8,668,314 in ENS trading volume. The transaction volume of ENS domains in the past three weeks has far exceeded the sum of the previous transactions.
Data source: NFTGo.io
ENS historical transaction volume comparison
According to the comparison between ENS and the overall market trend, ENS did not retreat following the market rhythm in a short period of time, and was not affected by the overall market, but went out of an independent market at its own pace.
Market capitalization and trading volume (top is total market, bottom is ENS domain name); data source: NFTGo.io
According to the time period of active trading volume, we fixed the time from April 26 to May 3, and used data to find out the reasons behind this boom.
Judging from the transaction records, before April 25, the transaction volume of ENS domain name NFTs has been relatively scattered, and the types of transaction domain names are also personal names and meaningful words, such as “lazybum.eth”, “pick-up.eth”. Even if there is a three-digit domain name, such as “095.eth”, it is sold at 0.6E, and the price is not too high.
ENS domain name prices in different time periods; data source: NFTGo.io
After a domain name “914.eth” with a transaction price of 2E appeared on April 26, the transaction volume of ENS began to explode, and “four-digit domain names” appeared many times: “0115.eth” (0.115E), “0589.eth” (0.16E), “7304.eth” (0.199E), “9283.eth” (0.2E). At the same time, their transaction prices began to climb gradually, and between April 27th and April 30th, high-priced transactions like “9559.eth” (0.99E) and “2049.eth” (1E) appeared again.
We can regard May 1 as a dividing line. After that, the floor price of the “four-digit domain name” has been fluctuating around 1E, gradually reaching the “1E consensus”, and the four-character transaction with the highest price of 6E appeared. The domain name “6000.eth”. At the same time, the floor price of “three-digit domain name” also came to 10E.
Floor price of four-character and three-character domain names; data source: NFTGo.io
However, this digital war is not over. Just as the three arrows drawn in the picture below, along with the rising trend of the prices of three-character domain names and four-character domain names, there is a third upward trend at the bottom.
Data source: NFTGo.io
There are many types of people in this trend, the main types are divided into
- Cybersquatting five-digit domain name (19367.eth)
- Cybersquatting well-known IP, URL domain names (mfer.eth, 58x.eth)
- Registration of individual user names (zpg.eth)
These characteristics indicate that after the digital war, although there is still a trend of squatting five-digit numbers, people’s purpose has begun to change from “digital hype” to “self-use”. According to NFTGo.io, there are currently 2.21 million unique wallet addresses on the market, and the number of ENS domain name registrations just surpassed 1 million this month. Judging from the popularity of social media, the excessive hype of ENS once again broke the circle, making people aware of the need to “own their own Web3 domain name”, so more people began to choose practical ENS domain names for trading.
The rarity of domain names
As of press time, three-digit Ethereum domain names often sell for more than 15 ETH. Meanwhile, four-digit ENS names are often sold for upwards of 1.5 ETH. According to the nearly one week from April 25 to May 3, when the transaction volume broke out, we listed the prices of some digital domain names and divided them into three ranges:
The Hierarchical Phenomenon of Digital Domain Names
We found that according to the length of the numbers, four-digit domain names are mostly in the transaction range of 2~3E, and three-digit domain names are mostly in the range of 3~10E. The transaction price of ENS is layered, the shorter the more expensive.
Secondly, domain names with special numbers such as “6”, “8” and “0”, or integer digits such as “00X.eth” and “X00.eth” will also be relatively expensive. For example, “6000.eth” conforms to the above two characteristics, so although it is a four-character domain name, it is also sold at the price of a three-character domain name.
Lastly, even-numbered features are also more expensive. For example, “987.eth” and “3456.eth” are high-priced domain names. Another example is “abc.eth” with the character of consecutive letters, which was traded at a price of 90E (about 250,000 US dollars) on May 3, setting the second highest transaction record in ENS history.
abc.eth; data source: NFTGo.io
An interesting point is that some users will take part of the domain number as the transaction price. For example, “0115.eth” is sold at 0.115E, and “555.eth” is sold at 55.5 ETH. There are also ENS domain names named after the stock code of listed companies in the market, and these other factors will also affect the final actual transaction price.
600519.eth; data source: NFTGo.io
Liquidity and supply and demand
In addition to rarity, to some extent, liquidity is also a key metric in digital domains. Three-digit domain names are more expensive than four-digit domains and citation letters also reflect supply and demand in the market. Compared with English words, numbers are the universal language of the world and are more widely accepted and circulated. In the real world, special numbers like 8888,001 have demonstrated a strong willingness to pay for rarity, be it a license plate or other entity.
return to real value
Previously, the domain name with the highest transaction volume in history was “paradigm.eth”, and the transaction price was 420E. The prices of some domain names squatting companies and famous IPs, such as “amazon.eth”, “NBA.eth”, “pornhub.eth”, are generally higher, but they are not sold after strict evaluation. It is believed that in the future, the domain name prices of these well-known companies will gradually correspond to the actual value of these trademarks.
Some high-priced ENS domains; data source: NFTGo.io
According to the number of Web3 user wallets and the actual number of registered ENS, a rough calculation (to offset the factors of “one person with multiple wallets” and “one person with multiple ENS”) is still far from meeting the needs of one ENS domain name. This demand will increase as new users enter. In the long run, ENS domain names still have a lot of value-added space.
The reason and value behind
In fact, in the early days of Web2, the URL was also a long series of numbers of the IP address type, such as 132.583.23.7. Later, for the widespread adoption of the Internet, programmers corresponded each address to an easy-to-remember domain name, just like the current Web3. The ENS domain name corresponding to the address is the same. In essence, the ENS domain name is to meet the needs of Web3 user address names, and the easier to remember and more distinctive domain names should have higher value.
In addition, compared with traditional domain names in the past, ENS domain names also have multiple practicalities:
One is to act as a receiving address, capable of receiving various blockchain-based assets.
The second is the value empowerment of NFT. ENS domain name not only has the function of identity certification, but also has a DIY form. People can create and trade their own name, which makes ENS domain name have the attributes of NFT creation and transaction.
The third is practical scenario applications, such as virtual hosts, decentralized websites, hosting IPFS sites, subdomains, and so on.
The fourth is the identity representative. The ENS domain name can not only store your personal data and other information, but also be the business card of all digital resources.
The fifth is to form a community. People with the same attributes form community DAOs, such as the 10k Club in this digital war. Their members all have four-character domain names, three-character domain names, and many KOLs own a large number of blue-chip NFTs. They use the ENS domain name as a sense of belonging. Form a community.
10kClub official Twitter
ENS has the full backing of the Ethereum Foundation. Long strings of Ethereum addresses are difficult to remember and trade. Having an ENS domain name can provide a better experience in the Web3 world. In addition, ENS domains do not charge royalties and are not controlled by a fully centralized entity. In addition to ENS, platforms like Unstoppableweb are also offering names for Web3 identities like “.nft”.
With the increasing number of users entering Web3, some “just-needed” products have gradually been noticed, such as this ENS domain name. People are starting to focus on the things that can create “uniqueness” in the Web3 world. Uniqueness and identity are one of the most important attributes in the NFT world. Many BAYC holders believe that it is necessary to have a domain name that is consistent with their BAYC number. These blue-chip NFT whales have squatted the ENS domain name, causing the data on the chain to skew. To deal with this situation, we should treat it rationally and understand the trend behind it through the phenomenon.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/data-parsing-ens-becoming-a-business-card-for-digital-resources/
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