Web3 domain names have become a new growth point in the NFT market

Web3 domain names have performed exceptionally well against the backdrop of an overall downturn in the NFT market, becoming a major point of rise. The user base for Web3 domain names is vast, with significant room for growth, serving as an important Web3 identity credential for users, allowing access to full-chain applications. In the long run, the utility value of Web3 domain names outweighs their speculative value.

Web3 domain names have rapidly developed recently, with the following main characteristics:

1. The trading volume and registration volume have significantly risen. ENS's trading volume has increased by 22.48% month-on-month over the last three months, and the total number of domain registrations has surpassed 2.6 million.

2. The user base is large. The domain registration volume of Unstoppable Domains and ENS has both surpassed 2 million.

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3. Diversified functions. Web3 domain names can aggregate address information, consolidate user data, access dApps, and serve as social account nicknames.

4. Combines human readability and decentralization, but there are concerns about user privacy protection.

5. The number of multi-chain deployments and multi-category suffix domain projects is on the rise.

6. Deepen cooperation with DID applications such as social graphs and reputation platforms.

7. The use value is greater than the speculative value.

8. The competition pattern of domain names is converging with that of public chains.

Mainstream Web3 domain projects include Unstoppable Domains, ENS, Handshake, . bit, SPACE ID, etc. Each of these projects has its own characteristics and develops on different public chains.

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In the future, Web3 domain names will become users' identity credentials and unified accounts in Web3, truly realizing their value. The trend of multi-chain deployment and integration of various dApps will further promote the development of the Web3 domain ecosystem.