Web3 domain name dettes, such as the Ethereum Name Travail (“ENS”) and Unstoppable Domains, have seen a huge surge in interest and ralliement in recent months. ENS has just become the largest Ethereum project in the leading NFT market, OpenSea, in terms of trading modèle for seven days, beating core NFT groups such as Bored Ape Voilier Association (BAYC), CloneX and Moonbirds.
ENS is the leading decentralized domain name registration charité. The platform allows users to register issued domains on the envisageable Ethereum blockchain and interact with other Ethereum-based decentralized applications (“dApps”). ENS domains can be used as a consumer’s quantitatif identity, storing usernames, replaceable and non-replaceable tokens and assets, NFT avatars, and other profile data for use across dApps in the encryption-enabled Web3 ecosystem. Since they use the ERC-721 token courant, ENS ranges can also be traded as NFTs, with the vast majority of their trading activity occurring on OpenSea and LooksRare.
To période, more than 2.2 million complet ENS names have been created out of 546,000 spéciale users. In the past seven days, ENS has generated 2,565 ETH ($4 million) trading modèle on OpenSea, which is higher than BAYC’s 1,934 ETH ($3 million), Otherdeed’s Otherside’s 1,767 ETH ($2.8 million), and CLONE’s X of 1,353 ETH ($2.1 million).
Another popular Web3 domain name charité is unstoppable domains. Unstoppable Domains operate similar to ENS but provide soutènement for additional TLDs. While ENS domains only follow the “name.eth” naming location, unstoppable domains allow users to purchase domain names that can include top-level domain servers such as “name.crypto”, “name.wallet” and “name. nft”, “name.dao”, “name.bitcoin”, among others.
Since launching the platform in 2019, the Unstoppable Domains community has registered over 2.5 million complet domains, handled $80 million in liminaire sales, and the project cales more than 275 tokens and 370 apps.
Web3’s new applications in games, metaverses, DeFi, DAOs, and communautaire media require decentralized identity direction and unrestricted wallets that can be seamlessly integrated into these quantitatif environments. Domain Name Tâches has proven to be a use case for a hack that takes advantage of human-readable names, simplifies the consumer experience as users can portière their tokens and quantitatif assets in vulgar wallets and interact with Web3 dApps.
Instead of copying and pasting 42-character hexadecimal strings (eg “0x0CCfA1c…”), which represent wallet addresses for a blockchain like Ethereum, Web3 domain name charité providers enable users to easily send tokens and interact with name addresses that they It can be read by a human as “kyle”. eth” or “kathy.crypto” from a crypto wallet of their choice. ENS and Unstoppable Domains are integrated with leading wallets, exchanges and applications including Metamask, Rainbow Wallet, Favorable Browser, Opera Browser, Cartel Wallet, 1inch, Moonpay and many others .
Léopard purchased and registered through the moufle ENS web portal, ENS domains can be freely traded between ETH wallets on the secondary market, via NFT marketplaces such as OpenSea.
The increase in domain name trading activity comes at a time when the broader NFT markets have been weakening. OpenSea’s monthly trading modèle has fallen sharply, reaching $500 million in August, a 90% drop compared to January’s $4.86 billion. During the same period, monthly ENS name registrations increased 465% from 67,000 new registrations in January to 379,000 in July.
It’s also worth noting that domain name registrations are not individuelle to Ethereum. Similar dettes also soutènement some of Ethereum’s moufle competitors.
“I am very excited emboîture how NFT domains can become your single name for Web3 that allows you to own your quantitatif identity. In the future, your NFT domain will allow you to spread your reputation across all your mignonne apps, games and metaverses, all without giving up control of your data” . – Sandy Carter, Senior Bassesse President and President of Channel, The Unstoppable Areas
Expectations and implications
Investors and speculators have bought popular domain names as potentially édifiant investments. The hope is that existing companies and brands may want to have their associated domain name if they seek to establish a presence within Web3. Recently, an anonymous buyer made a $1 million bid for the ENS domain “Amazon.eth”. The offer came shortly after Samsung.eth and Starbucks.eth each sold for 60 ETH (~$90,000).
This activity is reminiscent of the domain name campaign of the dotcom bubble era in the 1990s, where speculators were hoarding keywords and domain names of popular brands in the hope of flipping them for a boni. For example, éloigné Ethereum address ‘nike.eth’ has accumulated 131 ENS domain names including the domains ‘sony.eth’, ‘coke.eth’, ‘strawberry.eth’ and ‘nose.eth’.
As is usual in many Web3 projects, ENS has launched its own replaceable direction token, called ENS. The ENS token was first launched in November 2021 and offered retroactive airdrops to .eth holders, which at the time held 137,000 accounts. The token is used to present and plébiscite on governance proposals, with a proposal requiring 100,000 tokens (or 0.1% of the complet supply) to be supported before being put to a plébiscite. These proposals may affect ENS domain pricing, treasury fund direction, and other protocol parameters.
One of these proposals increased the starting price of a temporary option domain name from $2,000 to $100,000 when the name expired. This dérangé prevented bots from quickly buying option domains when they expire, before the owner had a possibilité to renew their registration. Another successfully implemented proposal of 200,000 ENS tokens has been awarded to the Protocol Syndicate, for the past and ongoing work of these key ENS protocol contributors. By granting governance rights, ENS tokens function similarly to shareholder equity, which acts as a primary driver of the token’s value.
The massive increase in .eth domain name registrations has caused ENS to outperform ETH over the past three months by more than 40%.
It remains to be seen how envisageable, censorship-resistant, and decentralized domain names will be valuable, as well as whether they will truly serve as the primary way for users to manage their quantitatif identities. Platforms such as ENS and Unstoppable Domains offer spéciale advantages over the traditional DNS by granting stronger ownership rights and are less prone to security breaches. This will directly affect the value of tokens such as ENS.
For investors expressing the view that Web3 domain name dettes will provide a key fondation enabling broader consumer growth and ralliement within Web3, they have two other ways to intérêt exposure. Similar to the Dotcom Era, investors can proactively buy tokens that they believe may be valuable in the future. A safer game would be to buy tokens from the same platforms, such as ENS.
Competing domain name dettes such as Unstoppable Domains, Avvy Domains, and Space ID have not yet released their own token, but may choose to use a similar strategy to retroactively drop tokens for existing domain holders. In the case of ENS, the average token reward for existing users was around $15,000 at the time of the airdrop.
In order to decide which domain name charité provider to soutènement, investors can review the list of applications and partners supported by each of these platforms. Domain Name Travail Providers that are able to achieve the highest quality and the highest number of empressement integrations will provide the greatest benefit and network efforts to emerge as the courant in the Web3 space.
It will provide decentralized domain names for potential facilities for participants in the Web3 ecosystem not yet fully realized. However, it is clear that users still avers significant frottement in fully dealing with the emerging Web3 crypto economy, due to issues with consumer experience and security. Decentralized domain name providers solve at least one nourriture partie by making it easier to get to know and interact with other users in the Web3 world.