Digital Domain Name NFT Has Triggered An Upsurge——The Future Value of ENS

1. In the past week, the ENS domain name NFT triggered a purchase boom, with total sales of more than $20 million, representing a year-on-year increase of 379.31%.

2. On April 27, the ENS domain name composed of three and four digits suddenly began to be popular. Users holding such NFT can join the 10kclub, an ENS domain name club.

3. As early as two years ago, Vitalik mentioned the value of the short digital ENS domain name NFT on twitter.

4. ENS can be said to be one of the most important and successful infrastructures in Ethereum, and may even become the basis for the operation of the whole Web 3.

5. The current Web 3 industry is just like Web 2, 20 years ago. With the increasingly frequent use of Ethereum ecosystem and cryptocurrency, more and more individuals and enterprises will need to buy an ENS domain name as their decentralized identity, which is also the basis for the continuous growth of ENS value.


As at November last year, Ethereum name service (ENS) launched an airdrop of ENS tokens. The average value of ENS tokens obtained by each address was as high as $10000, which successfully triggered FOMO for countless people. Now, ENS has returned to the center of attention in another form - domain name NFT.

According to CryptoSlam data, in the past week, the total sales of ENS domain name NFT exceeded $20 million, representing a year-on-year increase of 379.31%; On opensea, the floor price of the ENS domain name NFT has reached 0.009ETH, representing an increase of more than 60%. Meanwhile, many rare or special domain names NFT were sold at high prices. On May 3, abc.eth was sold at the price of 90ETH, approximately $250000, reaching the second highest trading price in the history of ENS; On May 2, 2000.eth is successfully traded at the price of 20ETH; On the same day, the domain name NFT 600519.eth of the stock code number of Maotai, a well-known Chinese liquor enterprise, is sold at 9.8ETH.



Why did the fanatical wave rise?

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This wave of speculation related to the ENS domain name NFT began on April 27, when the ENS domain name composed of three and four digits suddenly began to be popular, and the transaction volume of ENS increased rapidly. It is reported that this speculation began with an ENS domain name club called 10kclub. Users with an ENS domain name within four digits have the right to join their discord private discussion group. 10K is a series of NFTs, and the total number of avatar NFTs is 10000, so this meme is formed. The domain name NFT within the four digits of ENS is also only slightly more than 10000, and there is no possibility of additional issuance. In addition, a Web3 social protocol platform also said on the same day that it would airdrop tokens to ENS users, which further promoted the hype of ENS domain names.


As early as two years ago, Vitalik mentioned the value of short digital ENS domain name NFT on Twitter. These NFTs have a sharp recognition and limited supply. All these make the domain name of ENS within four digits become an NFT combination with unique cultural value. In the upsurge, even fraudsters use the lowercase letter "l" instead of the Arabic numeral "1" in an attempt to disguise as the higher priced number ENS. Holding such a digital domain name needs to pay a high maintenance fee every year. Therefore, whether the purchase boom of digital ENS domain name can be sustained and whether it is worth holding digital ENS domain name for a long time is still a problem, and it depends on the follow-up actions of 10kclub to give more value to the digital ENS domain name NFT.Aside from speculation, ENS itself is also an excellent project worthy of discussion, and may even become a major foundation for the operation of Web 3.


ENS domain name: important infrastructure of Ethereum

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ENS can be said to be one of the most significant and successful infrastructures in Ethereum, or even the "Prince project" on Ethereum. Founded in 2017, the project is a public welfare organization established by Ethereum foundation and has been operating independently since 2018. The operation logic of ENS domain name is similar to that of DNS (domain name service) of Web2. It can map a string of Ethereum addresses containing 42 irregular characters to a domain name set by people and easier to remember. Each ENS domain name is an NFT and can be traded. For example, Vitalik, the founder of Ethereum, owns the domain name Vitalik.eth, this domain name corresponds to his wallet address 0xabc68f7d712a1552468331c6ec29f5c112bb500ed5ffa660fe2b5af378921e37. Therefore, Vitalik also compares ENS to a decentralized phonebook.


In the early days of the Internet era, some DNS domain names with special significance were hot speculation objects. In 1995, a senior at the University of Washington registeredcool.com, which was bought by a consumer goods manufacturer at a sky high price of $3 million in 1996; In 1996, a businessman in Houston bought business.com for $150000 and then sold it to eCompanies for $7.5 million in 1999. By 2007, the domain name was bought by yellow page publisher Donnelley, and the purchase price is reported to have reached more than $300 million.

In the Web2 era, DNS domain name is the pass for enterprises to walk in the Internet world. A simple and easy to remember DNS domain name is not only a part of corporate culture, but also can bring huge traffic to enterprises and save huge advertising expenses. This logic is also applicable in the era of Web3. The current Web3 industry is just like Web2 20 years ago.

Many people have developed their own Web 3 layout by purchasing ENS domain names. Last September, Budweiser purchased the ENS domain name beer.eth at the price of 30ETH, as an important part of its metaverse business; In February, clothing brand Puma changed its twitter ID to puma.eth; American celebrity Paris Hilton also has her own ENS domain name parishilton.eth, her social account has more than 16 million followers on Twitter.



Conclusion

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According to DuneAnalytics, a blockchain analysis platform, as of May 3, the total number of ENS domain name registrations has exceeded 1.1 million. ENS domain name is a part of personal identity in the crypto world. With the increasingly frequent use of Ethereum ecosystem and cryptocurrency, more and more individuals and enterprises will need to buy an ENS domain name as their decentralized identity, which is also the basis for the continuous growth of ENS value.



Author: Gate.io Researcher: Ashley H. Translator: Joy Z.
* This article represents only the views of the researcher and does not constitute any investment advice.
*Gate.io reserves all rights to this article. Reposting the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.



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