Are ENS Domains A Viable Investment?

As people actively seek out investment opportunities, attention will often turn to NFTs. The ENS domains, which are non-fungible tokens – have generated a fair bit of momentum. The weekly average price is $210, although one shouldn’t ignore the other metrics telling a different story. 

The ENS Statistics Are Intriguing

It is easy to see why people would like a decentralized domain name. Although they are not as straightforward to access as a traditional domain, they provide censorship resistance and a viable alternative. The market for these NFTs is still relatively small, although over 507,000 wallets own ENS domains. That is a significant step forward, and it is not too late to pick one up today, either. 

One has to consider there are barely over 2 million ENS domains today. That may seem like a big number, but it is a drop of water in a large bucket. If the ENS wants to compete with ICANN, these numbers will need to increase exponentially. Of course, that is easier said than done, although the average price should not be a hindrance.

To put that into perspective, the median price for ENS sales in the past week is $56. That is pretty cheap, although more expensive than the average domain one can register today. The big upside is how there is a much higher chance of finding the .eth domain you want for a low price. Buying a .com domain from someone can easily cost you thousands of dollars, if not more. 

However, when we look at the NFT average sale price, it is $210. That is four times higher than the ENS sales average, indicating there may be some profit potential for those looking to flip these assets. Moreover, over 11,600 NFTs were sold in the past week for a volume of nearly $2.5 million. Very prominent statistics, even if the market remains relatively small. 

Bargains Galore

While the prices of $56 and $210 may seem decent, there is more to uncover. One in ten ENS sales this week were for $2 or less, allowing people to scoop up dozens of bargains with ease. Moreover, half of the sales were under $56, which skewed the average. That is primarily due to sales on the higher end of the spectrum averaging $182 or more. A recent sale of the 115.eth domain name brought in over $49,000, which is rather interesting. 

Whether ENS domains are a viable investment for the future remains uncertain. There is tremendous potential for decentralized domains, although they remain tricky to market and access. Until a decentralized DNS can be incorporated into every major browser, overall demand will primarily arise from existing cryptocurrency community members. Bringing these domains into the mainstream is a different ordeal. 

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