New registrations for the Ethereum-based ENS system increased by 2,300% on OpenSea last week. In the latest NFT craze on the Ethereum blockchain, domain names are the target of investments. Find out why here!
ENS in full swing
Domain name sales on OpenSea have increased nearly 2,300% over the past week as members of the Ethereum community rush to buy the coveted and rare three- and four-digit names.
The ENS or Ethereum Name Service is a domain name provider for the Ethereum blockchain. It is controlled by a DAO, a decentralized autonomous organization that uses governance tokens to make collective decisions. The ENS is closely associated with the Ethereum Foundation and has existed since 2017.
But this week, Ethereum users have shown interest in speculation about the future value of three- and four-digit ENS domains. ENS domains are domains ending in “.eth”. They are similar to Ethereum, which is a token created and sold like your average smart contract.
How do ENS names work?
ENS names operate in Ethereum’s decentralized naming registry, providing a secure and immutable way to address resources both on and off the blockchain.
A name registered with an ENS domain is a readable and easy to remember way to interact with an end user’s account, also known as a hex wallet address.
During this time, many public figures and celebrities created ENS names for their professional or personal use, such as Jimmy Fallon (fallon.eth), Paris Hilton (parishilton.eth), Trey Songz (treysongz.eth), Brian Armstrong (barmstrong.eth) and Vitalik Buterin (vitalik.eth).
The introduction of ENS is notable because, as Buterin pointed out, it fueled interest in three-letter and even four-letter .eth domains. He said about it:
They are a permanent commodity and you can do something with them!
ENS is a registry for web domains, just like .org and .com. ENS domains use Ethereum Name Service smart contracts that act as digital wallets for identity and information. ENS is a new top-level domain created to provide users with an alternative to their Ethereum address. It is more intuitive, easier to navigate and more secure.
My point of view on 4 figures #ENS
– there are only 10000
– numbers are universal (all languages)
– all the usefulness of the ENS
– it’s simple, it’s clean, and it causes outrage…outrage is bullish
– like loot, allows 4 composability where the community builds collections built from your token id
— 8747.eth🦍 (@Shmoneygang_Eth) April 28, 2022
Secondary market sales of ENS increased. ENS community leader alisha.eth said ENS saw a sudden surge in sales of 446 Ethereum on Tuesday, equivalent to around $1.3 million.
As an observer, I feel like I blinked and missed it.
She said it yesterday in a Twitter room hosted by ENS that the recent surge will wipe out all tokens and bring justice to investors. As of April 22, the Ethereum name service has already raised $3 million since its launch, according to a report by lead ENS developer nick.eth.
A few years ago, at the ENS, we made just over a million in revenue in one year. If someone had told me that it was possible to reach 1 million in 1 day… I would have laughed in their face.
— jefflau.eth | numeracy.eth | elucidate.eth (@_jefflau) April 27, 2022
119% more registrations
Last week, the number of registered .eth names increased by 119%. The total number of .eth domain names increased by 7%.
The growing interest in ENS hyperlinks differs dramatically from the domain name craze of the 1990s. Today, the numbers take over. Many digital ENS domains sell for over $17,000 each, including 792.eth, 645.eth, and 981.eth.
Some are buying their ENS names for speculative purposes, like 887.eth for 8.87 Ethereum, or nearly $26,000. 555.eth was sold yesterday for 55.5 Ethereum, an exorbitant price of $160,000.
555.eth bought for 55.5 ETH on OpenSea 🌊 #areas $ENS https://t.co/nGGw30COGQ
— ENS Sales Bot (@EnsSales) April 28, 2022
Some NFT community participants believe that quality names will help them sell their token or that they can make money from the name and not from their product or service.
“If your punk[Profilbild] the [Nummer] 4000, then you want 4000.eth,” user tommygun.eth posted on a Twitter space hosted by ENS Consultant 2594.eth on Thursday, referring to the numbering of CryptoPunks as part of a collection of 10,000.
Due to the exponential popularity of NFT PFP collections, their number has increased significantly in recent years. One of the most famous and successful collections is called Bored Apes.
“The idea is to sell some of it and lease most of it,” said 1289.eth, which sees a four-to-five-year lead time for its ENS domain names. Others have predicted an upcoming “ENS summer” in which ENS could experience similar levels of interest to decentralized finance in 2020.
The crypto financial market is beginning to assess the potential value of ENS domains, especially short, descriptive domains like quit.pcc.eth. This domain name is a subdomain of pcc.eth, which in turn belongs to the Purrnelopes Country Club NFT collection.
ENS is an Ethereum Name Service, a distributed naming system based on the Ethereum blockchain. While .eth names are free to register with the Ethereum name service, an ENS auction will be launched shortly. A name on the Ethereum Name Service All Names list is a great addition as there are currently only 10,000 names on the list.