ENS Nuggets Handbook (1): Where are the opportunities for latecomers?

The ENS domain name can be regarded as a business card in the Web3 world, and it is also becoming a standard for traditional institutions and large enterprises to “roll” into Web3. What opportunities do ENS domains have for latecomers?

In the more than 5 years since ENS was launched, it has gradually developed from the original Ethereum address resolution to the business card of the Web3 world, and with the development and adoption of ENS and the transformation of Web3, it is very likely to become the .com top-level domain in Web3.

This article will discuss the reasons for optimism about ENS domain names, which domain names are most worthy of attention, and ENS domain name opportunities. Before that, we can first spy on the adoption and trends of ENS from a set of data.

  • At the time of writing, the total number of ENS domain name registrations exceeds 1.86 million, and the number of independently held addresses exceeds 500,000.
  • In July, the number of ENS domain names registered in a single month exceeded 370,000, setting a record high.
  • At present, more than 360,000 domain names are set as the primary domain name (reverse resolution), and the primary domain name can serve as the user’s cross-platform Web3 username and Profile.
  • Beginning in November 2021, there are more than 40,000 new addresses registered in a single month for 5 months.
  • Since mid-2021, the number of domain names with Avatar avatars has steadily increased. As of now, more than 36,000 domain names have Avatar avatars set, with more than 10,000 newly added in May and July 2022.
  • Over the past year, ENS has totaled nearly $54 million in revenue, with a record $9.57 million in May and $6.86 million in July.
  • A rough estimate is that in the past year, 10% to 20% of ENS revenue came from renewal fees, and the rest was registration fees.

ENS Nuggets Handbook (1): Where are the opportunities for latecomers?

Source: Dune

ENS Nuggets Handbook (1): Where are the opportunities for latecomers?

Source: Dune

ENS Nuggets Handbook (1): Where are the opportunities for latecomers?

Source: Dune

Why am I bullish on ENS domains?

1. The ENS domain name can be regarded as a business card in the Web3 world , which can represent the identity of individuals, enterprises and even countries, and can also be displayed in combination with numbers, letters, emoji and symbols. In contrast, traditional domain names such as DNS are more focused on businesses and corporations. With the rise of Web3, ENS adoption will take a quantum leap.

2. Domain names are becoming the standard for traditional institutions and large enterprises to “roll” into Web3 . Budweiser bought beer.eth for 30 ETH last year; luxury brand Gucci started accepting cryptocurrency payments in some U.S. stores after acquiring gucci.eth for 12 ETH in March this year; jewelry brand Tiffany paid 29 ETH (approx. $50,000) for the tiffany.eth domain name.

3. The narrative of ENS in Web3 can be infinitely enlarged . According to incomplete statistics on the ENS official website, there are currently 505 applications integrated with ENS, including more than 60 wallets such as MetaMask and Coinbase Wallet, Opera and Brave browsers, OpenSea, Uniswap, Aave, 1inch, Balancer and other mainstream applications, and Browser Etherscan, etc. At the same time, you can also set and display profile information in the domain name you hold, such as other addresses such as Bitcoin, Litecoin or Dogecoin, as well as information including email, URL link, Twitter handle, and Github, Reddit, Telegram, etc., You can even add Avatar avatars. Imagine a future where you can use a primary domain name as your username and profile for most cross-Web3 applications, and change them all at once at any time.

4. ENS supports users to “borrow” domain names to display other NFTs they hold , that is, to set the NFT as Avatar. At present, the Avatar avatar supports the ERC-721 and ERC-1155 standard NFTs held by the user on Ethereum. After setting, the avatar can become the background image of the domain name, and can also be displayed in all applications that are compatible with ENS.

5. ENS comes with very strong social attributes . From the surface of the domain name, we can see one or two from the multiple clubs that have formed rapidly in recent digital domain names. In addition, ENS domain names may be more intuitive than NFT series such as BAYC and CryptoPunks. Users who have Twitter nicknames including “.eth” have a mentality of belonging.

6. Subdomains have great potential to drive ENS and even Web3 adoption exponentially . ENS’ upcoming NameWrapper will enable subdomains to exist as NFTs (ERC-1155 standard) independent of the original domain. Just imagine when a company that owns its company name domain name can distribute subdomains to subsidiaries, clients and even users, a DAO or project party that owns its project name domain name can distribute subdomain names to its users, a surname domain name can Distributing subdomains to other people with the same last name must be followed by an explosion of ENS and Web3 users. At the end, perhaps our participation in Web3 can be seen by having subdomains.

7. The auction after the expiration of the domain name will give the opportunity for fair pricing and the ability of the project party to develop sustainably . Currently, an ENS domain name is officially given a grace period of 3 months after it expires. After the grace period expires, the domain name will be auctioned at a reduced price (in an exponential manner) from $100 million until someone is willing to pay a real-time premium to buy it . Of course, as the previous data shows, 80% to 90% of ENS revenue is registration fees, which are $5 per year for domain names of 5 characters and more. A 4-character domain name costs $160 per year, and a 3-character domain name costs $640 per year.

8. ENS domain names also allow the launch of censorship-resistant decentralized websites , and can be used with DNS domain names held (ie, importing DNS domain names into ENS). In terms of decentralized websites, after uploading the website to IPFS, it can be accessed using the ENS domain name.

Which domain names are most worthy of attention?

1. Domain names of companies, brands, and project names : especially the domain names of tech financial giants and popular project parties. The ENS domain name with the highest turnover was paradigm.eth (420 ETH), the turnover of samsung.eth and nike.eth were both 60 ETH, and the starbucks.eth domain name was traded at 50 ETH. Recently amazon.eth holders rejected an offer of $1 million; apple.eth holders rejected an offer of 100 ETH.

2. Digital domain names : Digital domain names are simple and easy to remember, classic and universal, and the combination of three or four digits is quite rare, so the value is evident. The highest turnover is 000.eth (300 ETH, second only to paradigm.eth). There are already digital clubs such as 999 Club, 10k Club, 100k Club, etc. Driven by the popularity of digital domain names, many people started to register Arabic digital domain names, Chinese digital domain names and Emoji with numbers, etc. The transaction price of ٠٠٠.eth (Arabic “٠” is 0) reached 100 ETH, but the value of other such digital domains would be greatly reduced.

3. First name and last name: First name and last name domain names cover a wide range, and the subsequent development of subdomains is likely to further increase the value of such domain names. For example, John.eth domain name holders can Subdomains with last names are distributed to others, and Smith.eth domain holders can also distribute subdomains with different first names. Of course, users can also register their own domain names that contain both their first and last names.

4. General definitions, industries, and product categories : Domain names with a high degree of awareness, especially those that can expand subdomains, such as games.eth, wallet.eth, dapp.eth, asset.eth, name.eth, art.eth, beer.eth et al.

5. Short words : especially words related to economy, Internet and technology.

6. Emoji category : Emoji domain names can be regarded as PFP NFTs. According to Unicode statistics, there are currently only 1853 Emojis, three of which contain non-ASCII characters and cannot be used to register ENS domain names. The remaining Emojis consist of 1 to 5 codes. Emojis composed of three codes can be registered for a single Emoji domain name, and 1 Emoji The Emoji composed of code needs to use at least three expressions to form a domain name with more than three Emoji. According to ENS.Vision data, there are currently only 1327 single Emoji domain names, 1316 triple Emoji domain names, and 864 double Emoji domain names. The scarcity of low-character Emoji domains gives such domains a relatively high value, however, beware of potential iterations or mass additions of Emoji.

What are the opportunities for ENS domains?

If you’ve only started paying attention to ENS domains in the last few months, you’ll find that the vast majority of domains you can think of are already registered. A few months ago, after importing Fortune 500 names, combinations of three and four numbers, and the most popular top 2,000 common names and surnames in batches, I found that there were very few “fish that slipped through the net”. So what opportunities do ENS domain names have for latecomers?

1. Pay attention to domain names that are about to expire : However, because ENS expired domain names need to be auctioned at a reduced price, it is necessary to find suitable opportunities.

2. Make quotations for registered domain names : In the NFT trading market, make low quotations for promising domain names, and you can use the same ETH to make quotations for multiple domain names.

3. Discover potential domain names : Pay more attention to new industries, new fields, new things, new projects, and new products of technology giants, and look for domain names that have room for appreciation in the next few years.

4. Observe the transaction situation of domain names that sell for more than 1 ETH : You can also view the transaction volume from high to low in NFT markets such as OpenSea, and you may get some inspiration.

5. Use your imagination : symbols such as short letter combinations, word combinations, numbers and letters, and hyphens.

Of course, it is undeniable that the high popularity of ENS in recent months is largely due to the entry of hot money and speculators, but there are reasons to believe that the value of ENS itself will not be short-lived. In addition, ENS domain names are difficult to be priced. Domain name meaning, commercial value, coverage, awareness, shortness and cleanliness are all factors that can determine the value of a domain name, especially when purchasing a domain name or a domain name with a premium after squatting expires We must not only take decisive action on potential domain names, but also do our homework in advance to find a suitable price range.

The next issue of Foresight News will round up the ENS Domain Name Tool.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ens-nuggets-handbook-1-where-are-the-opportunities-for-latecomers/
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.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-08-01 11:47
Next 2022-08-01 11:49

Related articles