The introduction of Doman Name Service converted their IP addresses to legible text that can be easily remembered. A similar wave has risen in the NFT-verse. The space has spilled a lot of buzzwords over the years, and the latest one is ENS. Ethereum Name Service is a user-friendly way of presenting an Ethereum wallet address. Although Ethereum Name Service has been around since 2017, the trend boomed in the last few days, especially the 3-4 digit names. Having an ENS domain has almost become an expression of a person’s engagement and investment in the crypto-NFT space.
These new domain names have been in talks for several reasons, but the juicy airdrop from the project remains the top reason. ENS moved towards decentralizing governance protocol by launching its native token, $ENS, on 8th November 2021. The retroactive airdrop of ENS token gifting a sum ranging from $13,000 to $84,000 to the owners of these domains (according to Bezinga) was a big hit. Anyone who owned an ENS domain before 31st October 2021 was eligible to claim $ENS tokens.
What Are ENS Domains?
Ethereum Name Service is a decentralized version of DNS aka Domain Name Service that will be hosted on the blockchain network. Unlike traditional DNS, the ENS domain ends with .eth and can be bought or sold on the network. It is a secure way to map a user’s name to their wallet address. In simple words, ENS simplifies that 64-digit long alpha-numerical wallet address to a legible wallet address on Ethereum and other blockchains.
ENS has the potential to unify and provide multiple web services under its friction-free hood. One can use an Ethereum Name Service domain like a website URL, an email address, a social media handle, an avatar, or even buy or sell NFTs. It can also be used to build a web 3.0 publication, complement your .com domain, create a subdomain, or simply look up the Ethereum waller for content on etherscan. There are plenty of technical use cases and many more in the pipeline.
The Soaring 3 and 4 Digit ENS Trend:
ENS broker on Twitter posted a floor price of 4 digit domains that looks like –
0xxx = 1.5 ETH
1xxx = 1.522 ETH
2xxx = 1.5 ETH
3xxx = 1.5 ETH
4xxx = 1.45 ETH
5xxx = 1.48 ETH
6xxx = 1.49 ETH
7xxx = 1.489 ETH
8xxx = 1.49 ETH
9xxx = 1.4888 ETH
00xx = 2.73 ETH
69xx = 3 ETH
The 3 digits and 4 digit ENS trend has blown up, and a few of the craziest sales have been –
> 9999.eth listed for 999 ETH with two tabled offers –
What Is The Buzz All About?
Like most NFT trends, the 3 and 4 Digit ENS trend rose out of thin air. The story behind the mentioned 555.eth ENS sold for 55.5 ETH is that a Chinese man purchased the domain as the number holds an auspicious prominence in the Chinese culture.
Several influencers of the space also think that the 4 digit web3 domain names will be tied to NFTs in the future. This showcases the potential of appraisal of the 3 and 4-digit names. For example, if a user has BAYC 7820, they might want to have 7820.eth as their web3 domain name, and the first one to buy the combination will have an advantage over the others who may wish for the same combination of ENS.
According to the Scarce.guide, the sale of ENS names crossed 1,785 on April 27th. The sale of ENS barely crossed 100/day before the 3 and 4-digit domain hype. Stats on OpenSea also shows that the trading percentage of these domain names soared by 2,000% over the last week. Scarcity will play a crucial part in the growth of these names, and the first to buy the domain can leverage the most of the increasing demands. But only as long as the owner keeps renewing their domain by paying the yearly gas fees to retain the ownership.
The Skyrocketing 3 and 4 Digit ENS Game:
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 0.5 ETH for 4 digit ENS which is nearly $1,500. 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 for time to tell how long the craze will maintain its spot in the space.