Why are ENS domains valuable?
Yes, ENS domains are nfts that are valuable for several reasons that we will get to in a second. More importantly, like many other NFTs there value is derived from the marketplace, meaning their value comes from how much an individual is willing to pay for them.
This new .ETH domains have taken the world by storm and look revolutionized the digital asset space and even naming on true internet itself.
We could see an unlimited amount of uses cases, throughs social media, forums like reddits, videos games and many other venues where profile pictures and pseudonyms take place, which is almost everywhere now.
Why are Ens domains valuable: 5 reasons!
1. Scarcity:
This might be one of the biggest reasons for their value. Since all ENS domains are 1/1 meaning only one person can one any given ENS domains are quite scarce. This is amplified when a said .ETH name is particularly daughter after like funny.eth for example. Many people may want a certain ens domain but ultimate only 1 person can own it.
2. Utility:
Some people may think NFTs or ENS domains are not valuable because they are “useless”, which is not the case. In fact, ENS domains can be used for several purposes. You can use them as an IPFS website or even display them across social media platforms to show off your rare holding. Future implementations of these .ETH may be even bigger in video games.
3.Decentralized:
ENS runs on the ethereum network. It is governed by a DAO, which stands for “decentralized autonomous organization”and it is available worldwide with virtually no restrictions. Much like how Bitcoin has intrinsic value from its decentralized nature the same can be said for ETH domains. The crypto space and its investors often put a premium on projects and assets that are truly decentralized. No one can take your ENS names away from you.
4. Priced in ETH:
Since these ENS domains are priced in ETH is makes them naturally valuable and correlated to Ethereum as an asset. This is indirectly but still in a way means that by holding these domains you are holding ETH that is if you manage to sell them for Ethereum down the line. These ETH names can be seen as a riskier, more leveraged play on ETH that could even yield higher returns as well. It is quite common to see returns of 100x on some of the rarer names, since can buy them for only a few dollars and sell them for thousands.
5. They’re just cool.
The fifth reason may sound hilarious but just like .com domains they’re popularity and use never stopped growing. Who wouldn’t want a super rare domain name? No one. The same can’t be said for what can be the next iteration of digital real estate on the internet. Let’s see what the future has in store for these decentralized .ETH names and it’s DAO. It’s future looks quite bright.
ENS Rarity Goes hand in hand with scarcity!
Before the end of this article, I think it’s important to mention one of the main factors that make ens domains valuable which is rarity derived from scarcity. Basically, some of the most valuable and rare ens domains are actually very limited in number.
For example, there is the 999 club which is any 3 digit ens domain. Indeed, being part of this club is very exclusive as their will only ever be 999 3 digit domains ever to exist. They tend to be some of the most expensive domains to exist costing over $50’000 in price. Same can be said for the 10K club or 9999 albeit a bit cheaper than the latter. This is any number from 1000-9999, meaning any 4 digit ens domain still very rare and exclusive.
In fact, people have found several variations of this idea as long as their is a strict limited supply mathematically. Even Pokémon names ENS domains have seen their rarity and price increase substantially. Another variant would be the limited numbers in different languages such as Arabic 999 club. In other words, just like the other limited numbers but in different languages. For now English numbers have seen the biggest premium on price but even the Arabic variants are worth thousands of dollars.
You should get the idea by now just how much scarcity or the mathematical finite supply affects the price in a positive way. As long as the said ens domain is sought after. The smaller the supply, the more valuable the .ETH is. Also, the clubs that I mention similarly tend to impact the price positively because people like being part of an exclusive group. Whether in real life or on the internet, it is just human nature!
Are ENS domains worth It?
So, you are asking are ens domains worth it? I would say yes in many ways. Just imagine the rare .com domain names you could have gotten back in the day and became a millionaire. This may be the opportunity with some of these .ETH domain names.
From personal experience, ENS domains are worth it for investment. I have bought ENS domains at floor price also known as the registration and have sold them for huge profits just weeks or months later relatively easily just by listing them on Open Sea. With a little luck, you might be able to do the same. Not financial advise of course but I bought many of these ENS domains because I believe they are worth it, especially for the long term.
Conclusion:
If you were wondering why ENS domains are valuable and are ENS domains worth it, hopefully now you got your answer with the several key reasons listed above. Ultimately, these ENS domains are cool, catchy and very limited. As mentioned before, only 1 person on the entire planet can own any given domain at one time. So, as long as one other person wants it. Then the supply versus demand is like fine art. Very scarce unlike many other inflated assets. I do think these domains are the future and I also think they will eventually eat into and maybe even defeat the more traditional .com domains.