The next NFT craze? Rare ENS Domain Names Become “New Favorites”

Ethereum domain name service NFT sales on OpenSea have surged nearly 2,300% over the past week, as users scramble to buy very rare three- and four-digit domain names.

The Ethereum Name Service (ENS) is the domain name provider for the Ethereum blockchain, controlled by a DAO that uses governance tokens to make collective decisions. It is closely related to the Ethereum Foundation and has been around since 2017.

This week, Ethereum users began betting on the future value of three- and four-digit ENS domains. ENS domains end in “.eth” and each is an NFT that is minted and sold just like a normal NFT.

ENS domains are touted by its proponents as the future of decentralized, uncensored websites, and a potential universal login for all Web3 things. Today, ENS domains are most often used as simple, readable alternatives to traditional Ethereum wallet addresses, which tend to consist of 42 hexadecimal characters.

Many celebrities and public figures are currently using their ENS domains as Twitter usernames, such as Jimmy Fallon (fallon.eth), Paris Hilton (parishilton.eth), Trey Songz (treysongz.eth), Coinbase CEO Brian Armstrong ( barmstrong.eth) and Ethereum founder Vitalik Buterin (Vitalik.eth), among others.

Notably, Vitalik Buterin tweeted two years ago about the value of three- and four-letter ENS domains.

“They are fixed-supply assets and you can do anything with them!” he said at the time.

Similar to the early Internet domain name craze, ENS domain names with fewer letters are easier to read, spell, and search.

Since the minimum number of digits for an ENS domain name is 3 digits, there has been a sudden surge in sales of 3- and 4-digit domain names. The secondary sale of ENS NFTs on OpenSea reached a staggering 446 ethereum (about $1.3 million) on Tuesday, ENS community leader alisha.eth noted.

“As an observer, I feel like I’m missing it in the blink of an eye,” she said of the recent surge in sales on Twitter Space hosted by ENS yesterday.

According to data provided by ENS lead developer nick.eth, ENS revenue grew from $700,000 between April 14 and April 21 to $3 million between April 22 and April 27.

In the past week, ENS has seen a 119% increase in domain registrations and a 7% increase in the total number of active .eth domains.

The next NFT craze?  Rare ENS Domain Names Become "New Favorites"

ENS recent income, source: nick.eth

But this domain name boom isn’t quite the same as it was in the 1990s. Many users today are interested in numeric ENS names like 123.eth. Many three-digit ENS domains, such as 792.eth, 645.eth, and 981.eth, sell for over 6 ETH each, or about $17,000.

Some people buy 887.eth for 8.87 ETH, for nearly $26,000, based on the numbers contained in the ENS domain name itself. Coincidentally, the domain name 555.eth was sold for 55.5 ETH yesterday, and the transaction price was as high as 160,000 US dollars.

The next NFT craze?  Rare ENS Domain Names Become "New Favorites"

As for why some people are willing to pay hundreds of thousands of dollars for a domain name that might also make others think of themselves as a prisoner or living in an Orwellian dystopian world, the NFT community has some ideas.

“If your punk avatar is #4000, then you want 4000.eth,” tommygun.eth said on a Twitter Space hosted by ENS advisor 2594.eth.

In fact, the vast majority of NFT PFP collectibles are numbered, especially those blue-chip NFT projects such as Bored Apes, Azuki, Clone X, and Moonbirds.

tommygun.eth also shared that he owns a number of 3- and 4-digit ENS domains – although only one main ENS domain can be registered with an Ethereum wallet at any given time.

“My idea is to sell some of it and rent out most of the ENS domains,” 1289.eth said. He envisions a four to five-year future timeline for his ENS domain name.

Others are predicting an upcoming “ENS Summer,” similar to 2020’s “DeFi Summer” (where decentralized finance is in full swing), and ENS may see a similar boom.

Some NFT collectors are already betting on the potential value of ENS subdomains, such as “quit.pcc.eth,” which could be created by parent domain name holders. In this case, quite.pcc.eth is a subdomain of pcc.eth, which is owned by the Purrnelopes Country Club NFT family.

With only a fixed supply of 10,000 four-digit ENS names, some users have created entire communities around the “10k Club.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-next-nft-craze-rare-ens-domain-names-become-new-favorites/
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