ENS Domain Name “000.eth” Was Sold for 300 ETH

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Altcoins
ENS Domain Name “000.eth” Was Sold for 300 ETH

The Ethereum Name Service (ENS) provides the relevant statistics on the most highly-priced domain names on the Ethereum network. According to Wu Blockchain, the digital domain name “000.eth” was sold at 300 ETH with a market value of $321,000, making it the second ENS name by transaction price.

Popularity of ENS Domain Names

The demand for ENS domain names and addresses is largely caused by the fact they allow converting the major strings of data into readable addresses and identifiers that may be used in a manner similar to domain names in websites. Such unique addresses enable users to effectively integrate multiple hashes, addresses, and other types of identifiable information.

The ENS also contributes to the growing blockchain adoption by a broader community who may experience difficulties with working with the machine-readable format. Almost all forms of identifiable information can be successfully converted into a human-readable format, thus making it convenient for ordinary users with the minimum blockchain background.

Auctions are used to distribute the most popular domain names, and the most valuable one is “paradigm.eth” sold at 420 ETH. As a result, the recent 300 ETH purchase of “000.eth” makes it the second most valuable domain name by market value as of July, 2022. The trendiest and most appealing names are typically distributed through auctions, while renting services are also available for users, willing to reserve a specific domain name for a specified time frame. The fact of the growing demand for and prices of ENS domain names confirms the high degree of users’ loyalty to Ethereum’s project, despite the prolonged “crypto winter”.

Motivation for Investing in ENS Domain Names

While the general appeal of some names is understandable, there are also additional utilitarian reasons for investing in ENS domain names at the present moment. In particular, such a name is represented in a form of NFTs, thus, making it possible to successfully sell and transfer it to other people.

A smart contract associated with the top-level domain .eth allows the owner to create subdomains, contributing to the higher functionality and elaborating on the initial functionality.

The owner can also use NFTs to loan or sell their domains in a manner that will allow achieving the maximum degree of financial freedom. Therefore, the most important aspects refer to successfully identifying the major trends and rationally determining the marginal auction price that can be offered for each domain name.

The ENS popularity, largely caused by Ethereum’s dominance in the DeFi and NFT segments, has contributed to the development of the ENS token that is currently among 150 most valued tokens by market capitalization. The proper assessments of the demand for ETH and related services also allow strategic investors to receive extra revenues by investing in ENS tokens when they are relatively undervalued and selling them during the local peaks of NFT and similar activities.

Therefore, many strategic investors also demonstrate the growing interest in ENS as a source of extra profits in the long term.

Current Perspectives of Investing in ENS

Even those minor investors who do not possess the sufficient capital for offering the highest bids for the most popular domain names still can significantly improve their financial positions by applying technical analysis for determining the optimal entry points when investing in the ENS tokens.

While the current recession in the crypto market has negatively affected the market capitalization of the major crypto assets, it also creates unique opportunities for generating higher long-term returns if the proper risk management and portfolio practices are consistently introduced.

ENS Domain Name “000.eth” Was Sold for 300 ETH - 1
Figure 1. ENS/USD Price Dynamics. Data Source – CoinMarketCap

The major support level is at the price of $7.8 proved to be significant at least three times during the past few months. At the same time, there are also the following two major resistance levels: at the price of $14 and $20. The former constitutes an important level that can either support or reject the emerging trend. The latter will indicate the token’s potential to reach local maximums.

If the ENS price increases $14, traders and investors can reliably open long positions with the expectation of its considerable appreciation within the following months. However, stop losses should be used to successfully deal with the market uncertainty.

Dmytro Kharkov

Holding a Master’s Degree in Finance (Distinction), Dmytro Kharkov has proven expertise in Business Analytics, Data Analysis, and the crypto market. He has completed online courses on Machine Learning and Data Science from the leading universities and online schools. He closely monitors the latest crypto analytics insights from Glassnode, IntoTheBlock, Santiment, etc.