The Ethereum Naming Service (ENS) domain non-fungible token has recently seen a significant increase in its floor price. The NFT collection has a floor price of $1.47, about 50% above its minimum price yesterday.
The Ethereum-based project has also seen a surge in market capitalization in the past day. The project had a market cap worth $2.6 billion yesterday. Currently, the ENS NFT domain has a market capitalization of $3.99 billion or 2,416 ETH.
Image from Coingecko
Per data from Coingecko, OpenSea remains the leading NFT marketplace for trading ENS domains. LooksRare NFT marketplace also features the domain but with far less liquidity. Further, the Ethereum Naming Service collection has 2,684,577 minted non-fungible tokens. Interestingly, just over 600 thousand wallet addresses hold these unique domain names.
The Rise of ENS Domains
ENS domains gained massive popularity in November 2021 when the team airdropped ENS tokens to domain name holders. Following the airdrop, domain owners received thousands of dollars’ worth of ENS token. Since ENS hit the crypto space, several other domain hosting projects and services have been launched.
Domain names on the Ethereum Naming Service platform can also be used as wallet identities. This makes it seamless for users to recall their wallet details. Thus, rather than having extremely long string of alphanumeric characters as a wallet address, users can own wallet addresses with shorter and more familiar characters.
Notably, though, NFT domains are yet to make much of an impact on the internet compared to cryptocurrencies. Since NFT or web3 domains are not compatible with regular browsers, there has been friction in adoption.
Will NFT Domains be a Core Part of Web3?
In the last few years, the word “web3” has tingled the ears of many internet users. Crypto and blockchain enthusiasts believe a decentralized web is the future of the internet. NFT domains would be vital in the future web if that were true.
Despite the hype, some analysts have dismissed web3 as a fad or a nearly impossible concept. With web3 and NFTs still in an early stage, it would be critical to dismiss the future possibilities.
If NFT domains are to be useful in the web space, they would have to have a broader utility and be more accessible than they are today. As the crypto and web3 innovation diffuses, more web2 users may consider acquiring web3 domains soon.
