Giant whale sweeps up ENS domain "Web3 business card" becomes a business
As an alternative blockchain address, the ENS domain market has become a cost-effective tool during the bear market as a "Web3 business card."Author: Kyle, Hive Tech
On July 4th, the "000.eth" ENS domain name was sold for 300 ETH, setting a record for the second highest ENS domain sale price in history.
Prior to this transaction, the ENS domain market had been buzzing for several days. On July 3rd, the transaction volume of ENS domains exceeded 3.26 million USD, marking the highest trading volume in nearly a month and topping the NFT market trading volume leaderboard.
From the transaction records, it appears that recently popular domains are mostly 3 to 5 digit numeric domains. Some 3-digit numeric domains sold for over 30 ETH, while 5-digit numeric domains were priced around 0.045 ETH.
Some analysts believe that the surge in ENS domain sales during a quiet period in the crypto asset market may be related to the low Gas fees on the Ethereum network. According to data from OKLink on July 4th, the current Gas fee price is 13 Gwei, which is lower than 94.52% of the historical time, making the cost of creating and trading domains cheaper.
Notably, during this wave of ENS trading, several whales have been bulk creating and purchasing ENS domains, attaching website links to their personal domains, and starting domain selling businesses. As a "Web3 business card" that can replace blockchain addresses, the ENS domain market has become a cost-effective tool in the bear market.
ENS Domains Top NFT Trading Volume Leaderboard
In the winter of the crypto asset market, the NFT market has also been quite bleak, with daily NFT trading volume dropping from a peak of 3.26 billion USD to around 150 million USD. However, in this quiet market environment, ENS domains have emerged with an "independent market," with recent trading volumes surging and large buy orders frequently appearing.
On the morning of July 4th, the "000.eth" domain was sold for 300 ETH, ranking as the second highest ENS sale price in ETH. The highest historical sale amount for an ENS domain is "paradigm.eth," which sold for 420 ETH; this domain corresponds to Paradigm, a well-known crypto investment fund.
ENS stands for Ethereum Name Service, which is a domain management system on Ethereum. This project was incubated by the Ethereum Foundation in 2017, allowing holders to bind various blockchain addresses to ENS domains ending with ".eth" to receive crypto asset payments.
Due to the non-fungible characteristics of ENS domains, each domain can be considered an NFT. Just before the high sale of "000.eth," ENS domains had already been hyped for several days.
According to data from NFTGO, after entering July, the trading volume of ENS domains continued to increase, with the trading volume exceeding 3.26 million USD on July 3rd, marking the highest trading volume in nearly a month. It also successfully topped the NFT market trading volume leaderboard, surpassing numerous blue-chip NFT projects like Bored Ape Yacht Club and CryptoPunks. The overall market value of ENS domains subsequently climbed to 61.56 million USD, an increase of 8.7% compared to the recent low point.
Surge in ENS domain trading volume on July 3rd
From the transaction records, it can be seen that the recently sold ENS domains are mostly 3 to 5 digit numeric domains. Since the minimum length for ENS domains is 3 characters, the prices for 3-digit numeric domains are relatively high. After "000.eth," "218.eth" sold for a high price of 39 ETH, "933.eth" was sold for 35 ETH, and "635.ETH" was priced at 30 ETH.
In contrast, the prices for 5-digit numeric domains are much cheaper, and the transaction volume is also higher. NFTGO shows that recently, 5-digit numeric domains including "77451.eth" and "32840.eth" have been sold in succession, with an average price of around 0.045 ETH, approximately 47.25 USD.
Previously, the peak trading period for ENS domains occurred in May of this year, when a series of high-priced sales of numeric domains triggered a "digital war." Popular ENS domains were mostly 3 or 4 digit numeric domains, such as those in the format of "00X.eth" or "X00.eth," as well as domains with consecutive numbers. On May 2nd, the daily trading volume of ENS domains reached a historical high of 8.668 million USD.
Overall, ENS traders tend to prefer numeric domains, likely because Arabic numerals are universally recognized and have no language barriers. When used as a "payment code" for crypto assets, numeric domains are also easier to remember and identify.
Some analysts believe that the recent surge in ENS domain trading is partly related to the reduced Gas fees on the Ethereum network. According to OKLink data on July 4th, the Gas fee price was 13 Gwei, lower than 94.52% of the historical time. Since creating and trading ENS domains requires Gas fees, operating during periods of lower Gas fees significantly reduces the cost of creation.
Whales Sweep Up Web3 Domains to Open "Stores"
Since ENS domains support DIY registration and creation, they simplify the representation of users' blockchain addresses. In the increasingly popular Web3 concept, they are also seen as personal business cards for the Web3 era.
Previously, many well-known figures have used their ENS names as Twitter usernames, such as Ethereum founder Vitalik Buterin (vitalik.eth) and basketball star Shaquille O'Neal (shaq.eth). Some brands are also making moves in this area; Budweiser once acquired the ENS domain Beer.eth for 30 ETH, and Puma changed its Twitter account name to Puma.eth.
According to the ENS official website, there are currently 1.12 million ENS domains generated, with about 406,000 users holding ENS domains. Data from NFTGO shows that among all ENS users, 70.25% hold one domain, 3.88% hold between 11 and 100 domains, and another 0.33% hold more than 100 domains.
In this wave of ENS domain trading, it can also be observed that some whales are bulk registering and purchasing domains, with some even opening domain "stores."
According to NFTGO data, the account "chiefexecutiveofficer.eth" has recently been bulk buying ENS domains, including "chickenpox.eth" and "cortuzone.eth." Currently, this account holds as many as 1,948 domains, making it one of the top ten holders of ENS domains.
Another ENS domain holder, "baoyou.eth," holds 2,702 ENS domains, most of which are Chinese pinyin domains, such as "zhacai.eth" and "hanfeizi.eth."
Notably, the whale with the account name "goodnames.eth" currently holds 1,101 ENS domains. He has added a personal Twitter link to his domain address, and upon clicking, one can see that he has opened a domain store called "GoodNames." The account description states that "GoodNames" offers quality domains on Ethereum, "Welcome to purchase your future name."
The holder of "goodnames.eth" has opened an ENS domain store
In fact, at the dawn of Web2 domain names, many well-known entrepreneurs made their first pot of gold by reselling domains. For example, Yao Jinbo, the founder of 58.com, once founded a domain trading website called "Easy Domain," making a fortune through domain sales.
Industry insiders believe that compared to traditional website domains, ENS domains also have various practical uses. In addition to serving as blockchain addresses, they also act as NFTs with identity identifiers, which can store personal information and other data, essentially functioning as a digital identity card on the blockchain. Some have even formed communities around ENS domains, such as the "10k Club," where members hold four-letter and three-letter domains, many of whom also hold blue-chip NFTs. They gather together through ENS for Web3 investment research and more.
As more and more blockchain users bind ENS domains, the Web3 domain business is on the rise.
It is important to note that as the market for ENS domains expands, various speculative phenomena may arise. Hoarding and investment should be approached with caution, as creating domains and holding them long-term requires paying renewal fees. The cheapest 5-character or longer ".eth" domains require an annual payment of 5 USD worth of ETH, while 4-character ".eth" domains require 160 USD worth of ETH annually, and 3-character ".eth" domains are even more expensive, requiring an annual payment of 640 USD worth of ETH.
For ordinary users, a better approach is to create domains themselves during periods of low Gas fees, thereby obtaining a "blockchain business card" at a lower cost.
(Disclaimer: Readers are advised to strictly comply with local laws and regulations; this article does not constitute any investment advice.)
