Author: @0x长安 | @RealResearchDAO
1. ENS investment is gradually being recognized and accepted by the market
The ENS domain name tiffany.eth was sold for 29 ETH (~$50,000), as the American jewelry brand has launched a limited-edition CryptoPunk custom pendant.
PwC registered pwc.eth for 69 ETH.
The reason behind this is that ENS domain names, as the identities of the crypto world, have been gradually recognized by investors. The definition of DIDs by W3C is a new type of identifier that supports verifiable, decentralized digital identities.
First, it is an identifier, and second, it is a proof of identity. When not many people use it, it can only exist as a symbol. Only when more people recognize and use it, can it truly be used as a representation of statuses?
- Rainbow simplifies the creation and customization of on-chain ENS configuration files, and supports the purchase of ENS domain names in the wallet;
- The number of ENS domain names created has exceeded 2 million, the total number of independent participating addresses is 525,486, and the number of primary domain name registrations is 374,037;
- Kucoin buys 128 four-digit domain names and fragments them.
- ENS Maxis create ENS PFPs
- MEXC purchased 25 ENS domain names, 20 of which are four-digit domain names
It is enough to see that the market has increasingly recognized the status of ENS domain names, and companies have snapped up and registered their crypto identity certificates.
Therefore, when the value of ENS domain name is gradually discovered, and in the process of ENS domain name being gradually recognized, its price will also rise with everyone's recognition. So for us investors, how should we seize this opportunity?
2. The History of ENS Domains
Looking back at history, the reason for the bull market in ENS domain names is,
1. 999CLUB airdrops tokens to holders of three-digit domain names, FOMO triggered.
2. The emergence of ENS.Vision provides hardware conditions for users who create domain names. For example, Opensea cannot provide some infrastructure for searching domain names, such as English noun set, English adjective set, English name set, etc.
Since there are only 1,000 three-digit domain names (1K), the number is too small to accommodate users who want to enter the market in the future. Then the market turns its attention to four-digit domain names (a total of 10K). It happened at the time when BAYC was launching Otherdeed lands, and users who held BAYC snapped up domain names in numbers according to their own NFT numbers. For example, the holder of #3030, wants to own a 3030.eth domain name to pair with his BAYC, will push the popularity of the domain name to a higher level.
After that, the market is not satisfied with simple numeric domain names. Users have started various creations: postal code: (100053) stock code (601919), etc.
It is not limited to Arabic numerals, and the figures of various languages are competing for radiance. 陆肆捌 (Chinese numerals) १४७ (Sanskrit numerals) etc…
0xname domain name, such as 0x1, 0xf, etc.
Time domain name, 17h23, 24h15
Why did the hype start with numbers? Instead of the English letters?
1. Quantity. Since there are only 10 numbers, while English has 26 letters. According to the random combo of three digits, there are 1K three digits, 10K four digits, and 100K five digits. And there are 17576 three English letters combos, the more the number, the more capital is needed for investment. Therefore, in terms of quantity, it is very difficult for English letter domain names to be hyped.
2. Thinking from the perspective of acceptance, take Bored Ape Yacht Club #3030 as an example, NFT has a natural numeric symbol, and NFT holders have a relatively high degree of acceptance for such numbers. Usually, the total number of NFTs is 10K, and the number is also in line with some PFP sets. 1K and 10K domain names can be compared to PFP sets, which are isolated from other ENS domain names.
3. The ENS domains names that have potential in the future
3.1 ENS domain names with special meaning
Looking back, we already know what domain names are generally accepted in the market and why. We can use the same logic to filter the set of domains that may rise in the future.
So what direction will the future domain name develop? Think in terms of quantity and acceptance:
In terms of acceptance, the meaning behind the domain names is the most important. Such domain names include companies, names of people, countries, buildings, game characters, etc. For companies, the closer they are related to the crypto market, the higher the price of the ENS will be. Owners of this type of domain name have the expectation that companies will buy for trademark protection. Companies with high brand reputations often overpay.
For names, there are some well-known celebrities that are worth noticing. The price of the domain name will also rise. For example Elon.eth, Musk.eth.
From a quantity perspective, the shorter the number of domain names, the higher the expectation because of the limited number. At present, there are not too many three-digit English letter domain names, which I believe are being underestimated. Why? Because many English phrases are abbreviated, such as the United States Securities and Exchange Commission, abbreviated as SEC.
3.2 Emoji domain names
Beyond that, I think emoji domains are more likely to trigger the next wave of ENS domains.
Just some time ago ❤🔥**.eth**, 😮💨**.eth**, 🐻❄**.eth** were sold at high prices of 100 ETH, 30 ETH, and 26 ETH respectively. The investing logic of domain names is not exactly the same as other types of domain names.
First of all, we have to figure out: ENS is currently not open to register .eth names with less than 3 characters
- .eth name of 5+ characters: $5 in ETH per year.
- 4 character .eth name: $160 in ETH per year.
- 3 character .eth name: $640 in ETH per year
A single emoji is actually an emoji consisting of 3 or more characters.
Therefore, we can see from the ❤🔥**.eth** alone, a single emoji domain name is actually more impactful than a three-digit domain name. It is also more in quantity than a three-digit domain name. The emoji is composed of multiple characters, replicating the look of a single-digit domain name.
In terms of quantity, according to ENS.Vision, there are 1,327 single emoji domain names. Note: This list was proposed by the user and is listed by Vision. As we mentioned above, a single emoji domain name can be composed of more than 3 to 5 characters, and the list only shows emojis with more than 5 characters (not sure if the list is complete), that is, the number of real single emoji domain names is far more than 1,327.
Thinking from the identity level, the ENS domain name, as the infrastructure of DIDs, has advanced from the role of symbolization to today's identity certificate. I think that the domain name is more important in the crypto world to be a symbol of identity. Strong emoji domain names are colorful and recognizable symbols that can give people a more profound impression.
In terms of fun, emoji domain names are more contagious and easier to be accepted. Some time ago, I saw a more engaging domain name, 👉👌💦.eth. There are also some interesting ones: 👁🗨👄👁🗨.eth, 👁👅👁.eth, which are more creative.
3.3 Meme domain names
In the crypto world, there are a lot of forks and memes. Domain names also have their own forked versions. In my opinion, 0x domain names are one of them. In the last bull market of domain names, some 0x digital domain names have welcomed hypes. As of now: the floor price of 0x99CLUB (0x + two-digit combination) is 2.5 ETH, and the current floor price of 0x hexadecimal set is 50 ETH (only 16 of them, which are hyped up), the most expensive one sold is 25 ETH), and the current floor price of 0x999 domain name is 0.244ETH. Therefore, the 0x family is recognized by the market. If there are some types of domain names that are hyped up in the future, simply add 0x to their front as a fork to hype them up. For example, let’s assume the emoji domain names will rise in the future, and the 0x + emoji combo will also be a good choice.
There is also another type of fork, as we can see. After the numeric domain name became popular, the numbers of various languages were fired up. For example, as mentioned above: 陆肆捌 (Chinese numerals) १४७ (Sanskrit numerals), that is, registering some domain names with another language. For example The Great Wall, in its English name The Great Wall. Although the English expression is more popular, the Great Wall is a Chinese architecture. Many buildings and companies are not borderless. Although the commonly used expression is in the respective national languages, English has the highest acceptance. So when investing in one direction, you can choose some verified domain names, fork them, and translate them into another language.
4. Investment Risks
Investments are not risk-free, and not all investments will be a success. Investors should acknowledge the risks of investing in ENS domain names.
1. The number of emojis will not be similar to numbers and will never increase. The number is not fixed, but it will not grow too fast.
2. The renewal fee is high. The renewal price of a domain name composed of three letters is $640 per year, and the renewal price of a domain name composed of four characters is $160 per year.
3. The exposure and sales of domain names require a good platform. Obviously, Opensea currently does not have such services, while ENS.Vision is slightly centralized. For example, both are domain names that look like an emoji, 👮🏾♀**.eth** and 🗽**.eth**, due to the different number of characters, the former can be included in a single emoji domain name, while the latter cannot be included in a single emoji domain name.
4. It is difficult to distinguish between similar emojis. For example, these are three different emojis 💂♀️💂💂♂️, and it is difficult for users to tell the difference. Even the same emoji could have differences in gender and skin color. A unique emoji domain has its own significance.
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