Breaking News‼️
ENS collaborates with GoDaddy to bring traditional Web2 users into Web3 through domain names?
Could this spark a similar craze to the early .com era?
Is ENS worth investing in for retail investors?❓
ENS is a decentralized naming system based on Ethereum that maps complex blockchain addresses to human-readable domain names (e.g., 'alice.eth'). In linking with web2, ENS supports connecting traditional DNS domain names (like .com, .org) to its system, and has recently collaborated with GoDaddy and Dentity to promote subdomain features, expanding its application scenarios.
✈️ Multi-chain Support: It not only supports the resolution of Ethereum addresses but also supports addresses from other blockchains, content hashes, and metadata, becoming an important infrastructure in the Web3 ecosystem.
💵 The project's economic model mainly includes registration fees, NFT transactions, airdrops, etc.
1⃣ Registration Fee: ENS domain names require an annual registration fee, which varies based on the length of the domain. These fees provide income for the ENS DAO, used for project development and community governance. (Domain names are quite expensive)
2⃣ NFT Attributes: Each ENS domain name is an NFT that can be traded on markets like OpenSea. Short domain names (such as 3-5 digit numbers) have high speculative value due to their scarcity, for example, '000.eth' was sold for 300 ETH (approximately $320,000).
3⃣ Airdrops and Governance: In 2021, ENS launched its governance token (ENS) and airdropped it to early users, attracting widespread attention. The token is used for DAO governance to determine the direction of project development.
According to Xiao Li's analysis, the project has inherent value, making its actual income relatively stable. Registration and renewal fees provide predictable cash flow for the ENS DAO, supporting long-term development and community governance. On the other hand, its community is quite active, and the decentralized governance model of the ENS DAO gives the community greater say. In the future, it may fund more Web3 public goods, enhancing ecological impact. The project team is optimistic about the long-term prospects, and the future expansion of the market will bring further profit opportunities.
☀️ In terms of market performance, the token price reached $28.53 in 2024, and its NFT trading volume remained resilient during the market downturn in 2022, with scarce domain categories like 999 Club and 10k Club accounting for nearly half of the trading volume on OpenSea.
Comprehensive fundamental analysis predicts that it will exceed 50 and reach higher levels; however, short-term technical analysis shows that the ENS token price is consolidating in a descending wedge pattern, recently testing a key resistance level. If it breaks through, it may rise to $38-40 in the short term, reflecting market bullish sentiment towards ENS.
In the short term, high-priced trading of short domain names has sparked a speculative frenzy; the registration and renewal processes are relatively complex, and high gas fees may deter new users. ENS needs to further optimize UX and reduce costs to attract a broader user base.
🎯 In terms of competition, ENS is a leader in the Web3 domain field, but other public chains (such as Solana's .sol domains and HandShake's HNS) are also launching similar services. ENS's first-mover advantage and the support of the Ethereum ecosystem help it maintain a lead, but cross-chain compatibility and fee optimization are key to future competition.
You can choose to make a small investment in ENS, adopting a strategy that combines long-term holding and short-term trading, while closely monitoring market and technological developments!
