In recent weeks, Ethereum Name Service (ENS) domains have been gaining traction amongst NFT investors. On July 18th, amazon.eth, the name associated with the popular e-commerce company, received an offer of $1M. While the offer hasn’t been accepted or denied as yet, many are left wondering where the bid could have come from.
While most are uncertain why ENS domains have seen a spike during the bear market, some speculate that it’s rooted within its utility on the Ethereum network. As Ethereum scales to more users, three and four-digit ENS names have rocketed in price as users switch to a personalized name to send, trade, and sell ETH. Others speculate that as Ethereum moves towards mass adoption and the number of active wallets increases, choosing to use ENS domains allows for safer and easier trades.
As users opt to move away from the traditional string of 64 digits and letters, we’re beginning to see many ENS domains trade for large amounts as a result of their connection to businesses and establishments within web2. Besides the offer on amazon.eth, Samsung.eth, and Starbucks.eth has both sold for 60 ETH, or $90,000. The sale of amazon.eth would be groundbreaking if the owner chooses to accept, as it would mark ENS’s most expensive sale to date. The anticipated sale would top 000.eth, an ENS domain that sold for 300 ETH, or $450,000 at today’s market price.
amazon.eth has a 1 million dollar bid pic.twitter.com/PKrhWtnsl8
— nathanhead.eth (@NathanHeadPhoto) July 18, 2022
During the bear market, most investors have chosen to either sit on capital or deploy it into investments that hold long-term value. While the whole crypto market is on a downtrend, traders have chosen to invest in both generative and 1/1 artwork, as well as long-term bets such as ENS domains. While it’s uncertain as to whether or not ENS domains will continue to grow in value, many investors have continued to make outrageous bets in the hope of huge returns