ENS Domain- The Next Wave of NFT is Coming

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Ethereum Name Service (ENS) is leading the NFT market in total volume traded over the last 7 days with $9.38 million ,up 192.07%. Accumulated across 20.49K total sales, up 48.74%. On September 8, the trading volume of ENS domains exceeded $2.6 million, making it the highest trading volume in the past month, and became the top of the NFT market trading volume. 

More than 8.93K unique owners have purchased an ENS name, which has been popularized via top cryptocurrency and NFT figureheads and influencers adding their ENS (.eth) names on Twitter.

Meanwhile, the price of ENS Index token,  ENSDOMAIN which was launched by MEXC ,got increased by 312% with the increase of ENS Domains.

MEXC splits 4-digit ENS Domain NFTs into 26,000,000  ENSDOMAIN index tokens (1,000,000 ENSDOMAIN per NFT). The ENSDOMAIN index provides users with the opportunity to trade high-quality blue-chip NFTs at a low cost. If a user owns a sufficiently large percentage of the index, they can exchange their index holdings for one of the 26 ENS Domains NFTs. MEXC will expand the collection from time to time according to market demand, and MEXC’s total position will not exceed 10%. 

MEXC is the first CEX launched NFT Index Token,which is backed by blue-chip NFTs purchased by MEXC.NFT will be “off-chain fragmented” to increase liquidity,without destroying the ERC-721 protocol. 

MEXC purchases the well-chosen NFT artworks, splits them into 1,000,000 tokens for each NFT, and then lists the corresponding NFT Index. Users only need to trade like a spot to get a certain share of the NFT Index to enjoy related NFT rights at the same time. This significantly reduces participation requirements and investment risks for users.

The Skyrocketing 3 to 5 Digit ENS Game

Back to the increase of ENS Domain, let’s explore the logic behind the craze of it.

Among the ENS Domain tradings, the most popular domains are 3 to 5 digits domains.Some 3-digit domains sold for more than 60 ETH, the price of 5-digit domain name is around 0.06ETH.

‘000.eth’ was traded with 300ETH in the last 90 days, making the second-expensive  ENS domain trading record.The most expensive domain in the history is ‘paradigm.eth’, with a traded price of 420 ETH. 

Other three to five digit domains also caused a significant spike in trading volume.Since the minimum length of the ENS domain is 3 digits, it is more expensive.’022.eth’was sold for 69 ETH,’073.eth’ was sold for 47 ETH.In contrast, 5-digit domains are much cheaper and have higher volumes.’52708.eth’ and ’54734.eth’ were sold around 0.06 ETH. 

Why is it so hot?

The total number of 3 and 4-digit END domains are 11k. The scarcity clubbed with the hype of collecting a number set stimulated a sense of FOMO in the market. Even since the fad around 3 and 4-digit END domains started, the collectors have rushed to own one of the 10,000 probable combinations. This has resulted in ENS domain sales hitting an all-time high record with floor prices of 3 ETH for 4 digit ENS. This resulted in the minting of all possible 3-digit and 4-digit ENS in the past week. While the floor price of ENS continues to increase, it is time to tell how long the craze will maintain its spot in the space.  

Unlike other NFTs, the supply is locked. If the best time to enter the market is missed, users can either buy with a high price or only wait. The digit ENS domain has great scalability. If users miss 3 digits, there are 4 digits, and even 5 digits. Besides, it can also be extended to 3 or 4 letters. This kind of gameplay can maximize FOMO emotion, so it will continue to attract attention.

From web2 to web3, the value that ENS brings

In the early days of Web2, the URL was always a long series of numbers ,like 132.583.23.7. 

In order to promote the website , an easy-to-remember domain name was developed, just like ENS domain in Web3.The ENS domain name is to solve the needs of Web3 users , the easier to remember and more distinctive domains would have higher value.

Compared with traditional domain names in the past, ENS domain names also have a variety of applications:

– A receiving address, ENS domains are capable of receiving various crypto assets

– Empower NFT. ENS domains are not only able to prove identity, but also are able to DIY. People can create and trade their own names, which makes ENS domains have the attributes of NFT creation and trading.

  • Identity representative. ENS domains can not only store your personal data, but can also be a business card for all digital resources.
  • Build communities. People with the same attributes form community DAOs, such as 10k Club.

Where will the price go, as the one most successful Ethereum application?

Like Vitalik Buterin said in an interview: “The Ethereum domain name service ENS is by far the most successful non-financial Ethereum application, and it can basically be compared to a decentralized phone book.”

With the ENS domain spike, the price of ENS token also increased, with a highest gain of 125% in the last 2 months. Compared with NFT, the token price only had a small increase. The FOMO of ENS domains does not affect the token price that much. However, with the development of the ENS domain and its using scenarios, the ENS token will reflect the value sooner or later. 

Conclusion

ENS is supported by the Ethereum Foundation.Long Ethereum addresses are difficult to remember and trade. However,an ENS domain can provide a better experience in the Web3 world. Additionally, ENS domain does not charge royalty fees, it is not fully controlled by a centralized entity. Even though, these ENS tokens are in low price, the future value depends on its mainnet development.

As of the development of Web3, some ‘must need’ products are gradually being noticed, like ENS domain. People start to pay attention to things that can create ‘uniqueness’ in a Web3 world. Uniqueness and identity are of the most important attributes in the NFT world.Many BAYC holders believe it is necessary to have a domain which is the same as their BAYC number.Therefore, they all registered ENS domains , which causes huge trading volume.We should treat it rationally and understand the trend behind it.


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