ENS domain name speculation story: Kweichow Moutai stock code ENS transaction price reached $26,940

On the 2nd of this month, according to data from the NFT trading platform Opensea, the ENS (Ethereum Domain Name Service) digital domain name 600519.eth was sold for 9.8ETH (equivalent to US$26,940), and the number "600519" is exactly the stock code of Kweichow Moutai.

With the transaction of Moutai stock code ENS, the hype of ENS has also attracted much attention. According to the ENS official website, the number of newly registered ENS domain names on May 6 was 20,479, the total number of domain name registrations reached 1,166,945, and the number of holders was 408,062.

According to NFTGo.io statistics, ENS digital domain name sales in the past 24 hours were US$2.54 million, and sales in the past week exceeded US$27.85 million, a year-on-year increase of 126.91%. On May 2, the historical sales peak reached US$2 million.

In fact, ENS domains have become another blockchain-based investment hotspot as their supporters claim them to be the future of decentralized, censorship-resistant websites and a potential universal login for all things Web3.

Some analysts pointed out that as an entry-level product of web3, digital domain names cannot currently meet the needs of cross-chain scenarios. From ENS to TNS to unstoppable, domain name suffixes include .eth, .bit, crypto, etc. It is not possible to determine which suffix will eventually become a phenomenal product at the .com level.

The number of registrations has exceeded 1.1 million

It is reported that ENS was founded in May 2017. It is an ecological project incubated by the Ethereum Foundation. Its original creator and developer is Nick Johnson. It is currently developed and operated by a non-profit organization called rue Names LTD.

ENS stands for Ethereum Name Service, which is a decentralized domain name service provider built on Ethereum. Ethereum addresses are a series of characters starting with 0X and consisting of uppercase and lowercase letters and numbers. The general address length is 42 bits, which is difficult to remember and has poor readability, and is prone to errors during use. In addition, when transferring, recharging, and withdrawing encrypted assets, it is often easy to miss characters or enter the wrong characters, resulting in transaction failures or reaching the wrong address, causing asset loss and theoretically impossible to recover.

ENS can convert Ethereum addresses into characters that are easy for people to remember and recognize, forming Ethereum domain names ending with .eth.

At the same time, ENS domains are touted by their supporters as decentralized and a potential universal login for all things Web3. Today, ENS domains are often used as a replacement for traditional Ethereum wallet addresses.

According to the ENS official website, as of May 6, the number of newly registered ENS domain names on that day was 20,479, and the total number of ENS domain name registrations has exceeded 1.1 million, reaching 1,166,945, with 408,062 holders.

Dai Yue, a senior domain name investor and founder of Domain Name Mall, told the Blockchain Daily reporter that because ENS domain names are on the chain, they have better liquidity and more convenient transactions; and the potential users of ENS domain names are more extensive. In addition to enterprises, individuals also need blockchain domain names.

Currently, many celebrities and public figures are using their ENS domains as Twitter usernames, such as former NBA player Shaquille O'Neal (shaq.eth), Coinbase CEO Brian Armstrong (barmstrong.eth), and Ethereum founder Vitalik Buterin (Vitalik.eth).

In addition, some large companies are also using their ENS domains. In February this year, Puma renamed their Twitter account to Puma.eth, and Budweiser, a subsidiary of Anheuser-Busch InBev, purchased Beer.eth for 30 ETH through OpenSea’s ENS last year.

Some industry insiders also said that companies use ENS domain names for brand promotion purposes, while individuals use ENS domain names more as a manifestation of a trend.

Sales volume in the past 24 hours was $2.54 million

Notably, Ethereum founder Vitalik Buterin mentioned the value of three- and four-letter ENS domains on Twitter two years ago.

“They’re fixed-supply assets and you can do anything with them,” he said at the time.

Similar to the early Internet domain name craze, ENS domain names with fewer letters are easy to read, spell and search. And because the minimum number of digits for an ENS domain name is 3, 3- and 4-digit ENS domain names are more popular, and sales have suddenly increased significantly.

In addition, an NFT player who did not want to be named told the Blockchain Daily reporter that ENS domain names have been very popular recently. He received two three-digit digital domain names a few days ago. In just less than a week, the lowest transaction price has reached about US$20,000, which is double the purchase price.

“We have received good inquiries for the leopard-shaped domain names such as gggg.eth and the teasing domain name shi.eth,” said the player.

In addition, the Blockchain Daily reporter noticed in the ENS investment exchange community that due to the popularity of registrations for ENS three- and four-digit digital domain names, some players have begun to turn their attention to investing in six-digit ENS domain names of A-share stock codes. For example, the domain name of Kweichow Moutai stock 600519.eth was sold at a high price of 9.8ETH (equivalent to US$26,940).

According to the data from the Ethereum blockchain browser, the domain name with the highest historical transaction volume is paradigm.eth, which was priced at $1.508 million and is the name of a well-known cryptocurrency venture capital company. In addition, the domain name abc.eth was exchanged for 90 ETH, equivalent to about $263,700, becoming the second highest transaction in the history of ENS.

According to NFTGo.io data, as of now, the market value of ENS digital domain names has reached 52.66 million US dollars, with sales of 2.54 million US dollars in the past 24 hours and sales of more than 27.85 million US dollars in the past week, a year-on-year increase of 126.91%. On May 2, the sales even reached a historical peak of 2 million US dollars in one day.

Dai Yue analyzed to the Blockchain Daily reporter that the ENS digital domain name has both the attributes of an Internet domain name and the investment value of NFT. The digital domain name makes the originally non-standardized NFT standardized, making it easier for investors to distinguish the value.

"In the future, blockchain domain names will not only be ENS domain names, there will be more options," he said.

At the same time, Dai Yue pointed out that the short-term price is artificially high because the price of certain categories of domain names is limited. Now the registration volume has increased significantly, and more other blockchain domain names have been born, which will cause some funds to flow to other categories of ENS domain names and other blockchain domain names. It is recommended to register and invest rationally and do a good job of risk control.

In addition, some analysts pointed out that the current digital domain names have also solved the needs of cross-chain scenarios. From ENS to TNS to unstoppable, the domain name suffixes include .eth, .bit, crypto, etc. As the entry-level product of web3, the cross-chain demand for domain names is naturally the first priority. Which suffix will eventually come out and become a phenomenal product at the .com level cannot be determined for the time being.