Original Author: Karen

Original Author: Karen

In the more than 5 years since its launch, ENS has gradually developed from the initial address resolution of Ethereum 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 top-level domain of .com in Web3.

• This article will discuss the reasons for being optimistic about ENS domain names, which domain names are most worthy of attention, and the opportunities of ENS domain names. 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, with more than 500,000 independently held addresses.

• In July, the number of single-month registrations of ENS domain names exceeded 370,000, setting a record high.

• At present, more than 360,000 domain names have been 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 will be more than 40,000 new domain name registration addresses in 5 months.

• Starting in mid-2021, the number of domain names with Avatar avatars has increased steadily. Up to now, more than 36,000 domain names have Avatar avatars, and more than 10,000 new domain names will be added in May and July 2022.

• image description

source:Dune

source:Dune

source:Dune

source:

Why I am optimistic about ENS domain names?

1. The ENS domain name can be regarded as a business card in the Web3 world, which can represent the identity of individuals, companies 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, the adoption of ENS will take a quantum leap.

2. Domain names are becoming the standard configuration for traditional institutions and large enterprises to "roll" into Web3. Budweiser purchased beer.eth with 30 ETH last year; luxury brand Gucci began to accept cryptocurrency payments in some stores in the United States after acquiring gucci.eth with 12 ETH in March this year; jewelry brand Tiffany purchased 29 ETH (approx. $50,000) for the tiffany.eth domain name.

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

4. ENS supports users to "borrow" domain names to display other NFTs they hold, that is, set the NFT as an Avatar. Currently, the avatar avatar supports the ERC-721 and ERC-1155 standard NFT 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 adapt to ENS.

5. ENS has very strong social attributes. From the perspective of domain names, we can see one or two from the recent rapid formation of multiple group clubs in digital domain names. In addition, ENS domain names may more intuitively show the "celebrity effect" than NFT series such as BAYC and CryptoPunks. We may Users whose Twitter nicknames include ".eth" have a mentality of belonging.

6. Subdomains have great potential to drive the adoption of ENS and even Web3 exponentially. ENS's upcoming NameWrapper will enable subdomains to exist as NFTs (ERC-1155 standard) independently of the original domain name. Just imagine, when a company with its company name domain name can distribute subdomains to subsidiaries, customers or even users, a DAO or project party with its project name domain name can distribute subdomains to its users, a surname domain name can Distribute subdomains to other people with the same last name, and with it, there must be a huge explosion of ENS and Web3 users. In the end maybe by having subdomains we can see our participation in Web3.

7. The auction after the expiration of the domain name will give the opportunity of fair pricing and the sustainable development ability of the project party. At present, after the expiration of an ENS domain name, the official will give a grace period of 3 months. After the grace period ends, the domain name will be auctioned from 100 million US dollars (exponentially) 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 is $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 deserve the most attention?

1. Domain names of companies, brands, and project names: especially the domain names of technology and financial giants and popular project parties. The ENS domain name with the highest transaction volume is paradise.eth (420 ETH), the transaction volume of samsung.eth and nike.eth are both 60 ETH, and the starbucks.eth domain name is traded at 50 ETH. Recently an amazon.eth holder rejected an offer of $1 million; an apple.eth holder rejected an offer of 100 ETH.

2. Numerical domain names: Numerical domain names are simple and easy to remember, classic and universal, and the combination of three and four digits is quite rare, which shows its value. 000.eth (300 ETH, second only to paradise.eth) has the highest turnover. Currently there are 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. The transaction price of ٠٠٠.eth (Arabic "٠" is 0) reached 100 ETH, but the value of other such digital domain names will be greatly reduced.

3. Name and surname categories: first name and surname domain names cover a wide range, and benefiting from the development of sub-domain names in the future is likely to further push up the value of such domain names. For example, John.eth domain name holders can include different Last name subdomains are distributed to other people, Smith.eth domain name holders can also distribute subdomains with different names. Of course, users can also self-register domain names that include 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 sub-domain names, such as games.eth, wallet.eth, dapp.eth, asset.eth, name.eth, art.eth, beer.eth etc.

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

6. Emoji category: Emoji domain names can be regarded as PFP NFT. According to Unicode statistics, there are currently only 1,853 Emoji, three of which contain non-ASCII characters and cannot be used to register ENS domain names. The Emoji composed of code needs to use at least three expressions to form a domain name above triple Emoji. According to ENS.Vision data, there are currently only 1327 single emoji domains, 1316 triple emoji domains, and 864 double emoji domains. The scarcity of short-character Emoji domain names endows such domain names with relatively high value. However, it is also necessary to beware of potential update iterations or massive additions of Emoji.

What are the opportunities for ENS domains?

If you've only been paying attention to ENS domains in recent months, you'll find that the vast majority of domains you can think of have already been registered. A few months ago, after importing the world's top 500 names, combinations of three and four numbers, and the top two thousand common names and surnames in batches, I found that there were very few "fish that slipped through the net". So for latecomers, what opportunities does the ENS domain name have?

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

2. Make quotations for registered domain names: In the NFT trading market, you can make low quotations for optimistic domain names, and you can use the same ETH to quote 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 transactions of domain names with a price of more than 1 ETH: You can also check the transaction volume from high to low in OpenSea and other NFT markets, 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, brevity 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 the preemptive registration expires We should not only make a decisive move on potential domain names, but also do our homework in advance to find a suitable price range.