After ENS (Ethereum Name Service) announced a limited ‘.eth’ domain name NFT collection, many collectors hurried to get one, making a huge surge in its demand. The enthusiasm for getting three and four-character ‘.eth’ domains in the form of NFTs have pushed their value to all-time highs.
What is the ENS domain?
The Ethereum Name Service (ENS) is a domain name supplier for the Ethereum blockchain. It provides names with the ‘.eth’ suffix that may be used as a more user-friendly alternative to standard Ethereum wallet addresses. Traditional cryptocurrency wallet addresses are often large strings of numbers and characters.
Anyone may pick a unique domain name and mint it as an NFT marketplace using ENS by spending a certain amount in Ethereum tokens. As of now, it has around 825000 unique .eth domain names registered by more than 349000 people.
How much surge in .eth domain demand?
There is a limited number of short ENS domain names (around 10000) with three to four characters (such as nft.eth, defi.eth). The scarcity of the short ENS domain name collection fueled a surge in demand. It has led to sales of ENS domains on the NFT open market increasing by almost 4000% this week. Its weekly volume surged by more than 2800% on the OpenSea marketplace alone.
In a single week, the overall value of ENS domain NFT transactions reached 756.83 ETH, or about $2.2 million. The average floor price of three and four digit ENS domain names on Opensea is 0.009 ETH.
