ENS Domain- The next wave of NFT is coming – CryptoMode

Ethereum Name Service (ENS) leads the NFT market in total traded volume over the past 7 days with $9.38 million, up 192.07%. Accumulated over 20.49,000 total sales, up 48.74%. On September 8, the trading volume for ENS domains exceeded $2.6 million, making it the highest trading volume in the past month and becoming the peak of the NFT market trading volume.

More than 8,93,000 unique owners have purchased an ENS name, which has been popularized by top cryptocurrency and NFT figures and influencers adding their ENS (.eth) names to Twitter.

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

MEXC splits 4-digit ENS Domain NFTs into 26,000,000 THE SOLITUDE index tokens (1,000,000 ENSDOMAIN per NFT). The ENSDOMAIN index gives users 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. The NFT will be “off-chain fragmented” to increase liquidity, without breaking the ERC-721 protocol.

MEXC buys the well-chosen NFT artworks, splits them into 1,000,000 tokens for each NFT, and then displays the corresponding NFT index. Users only need to trade as a venue to get a certain share of the NFT index to enjoy related NFT rights at the same time. This significantly reduces requirements for participation and investment risk for users.

Skyrocketing 3 to 5 digit ENS game

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

Among the ENS domain trade, the most popular domains are 3 to 5-digit domains. Some 3-digit domains sell for more than 60 ETH, the price of a 5-digit domain name is around 0.06 ETH.

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

Other three- to five-digit domains also caused a significant increase 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 volume. ‘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 is 11k. The scarcity clubbed with junkies to collect a set of numbers stimulated a sense of FOMO in the market. Even since the craze around 3- and 4-digit END domains started, collectors have rushed to own one of the 10,000 likely combinations. This has resulted in ENS domain sales breaking records with bottom prices of 3 ETH for the 4-digit ENS. This resulted in the stamping of all possible 3-digit and 4-digit ENS in the last week. While the floor price at ENS continues to rise, it is time to tell how long the craze will keep its place in the room.

Unlike other NFTs, the supply is locked. If the best time to enter the market is missed, users can either buy at a high price or simply wait. The Digit ENS domain has great scalability. If users miss 3 digits, it’s 4 digits, and even 5 digits. Moreover, it can also be extended to 3 or 4 letters. This type of gameplay can maximize the feeling of FOMO, so it will continue to attract attention.

From web2 to web3, the value that ENS brings

In the early days of Web2, the URL address was always a long string of numbers, such as 132.583.23.7.

To promote the site, an easy-to-remember domain name was developed, just like the ENS domain in Web3. The ENS domain name should solve the needs of Web3 users, the easier to remember and more distinctive domains will have higher value.

Compared to traditional domain names in the past, ENS domain names also have a number of uses:

– A receiving address, ENS domains are able to receive various crypto assets

– Strengthen NFT. ENS domains are not only able to prove identity, but are also able to do DIY. People can create and trade their own names, making ENS domains have the capabilities 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 community. People with the same characteristics form community DAOs, such as the 10k Club.

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

As 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 the ENS token also increased, with a peak gain of 125% in the last 2 months. Compared to NFT, the token price had only a small increase. The FOMO of ENS domains doesn’t affect the token price that much. But with the development of the ENS domain and its usage scenarios, the ENS token will reflect its value sooner or later.

Conclusion

ENS is supported by the Ethereum Foundation. Long Ethereum addresses are difficult to remember and act on. However, an ENS domain can provide a better experience in the Web3 world. In addition, the ENS domain does not charge royalty fees, it is not fully controlled by a centralized entity. Although these ENS tokens are in low price, the future value depends on the development of the online network.

With the development of Web3, some “must need” products are gradually noticed, such as ENS domain. People are starting to pay attention to things that can create “uniqueness” in a Web3 world. Uniqueness and identity are among the most important characteristics in the NFT world. Many BAYC holders feel it is necessary to have a domain that is the same as their BAYC number. Therefore, they registered all ENS domains, which causes a large volume of trade. treat it rationally and understand the trend behind it.

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