Why would you not buy Ethereum right now? Ethereum Name Service (ENS) Domain Auction = Locked Up ETH
Hey Fellow Steemians!
I have been a major fan of Ethereum's Name Service Domain Auction that has been going on for the last month or two. Business is actually my main appeal and it fascinates me to see the blockchain/crypocurrency space experience such rapid and disrupting growth. I mean, I really took my deep dive into trading and cryptocurrency just 3 months ago and Ethereum was only $54....hitting a high above $407 and dipping near, if not below $200 just the last couple days, Ethereum's decline seems to be coming to a halt while currently sitting around $309.
Ethereum believers see this as a ripe time because they believe in the technology and the community behind the technology advances. The ENS Domain Auction alone is something that is going to be what I like to call an 'underlying stimulator' to the cryptocurrency as ETH is locked into domain names for 1-year, and likely longer depending on the interest. So far, as we can see below, there has been:
- 10,424 participants bidding on ENS domains
- 187,999 bids total
- 18 bids, approx., per participant
- 3,114,433 ETH deposited for bids
155,602 ETH LOCKED for names
Divided by
92,847,900 total ETH circulating
= 0.16759% of all circulating ETH locked up
0.16759% x $26,537,693,805 = $44,474,521.05
The percentage may be small, but it I believe every little factor comes into play when valuing anything on open exchanges -
specially cryptocurrency. According to Verisign, there are approximately 326.4 MILLION DNS names in the internet's registry, in 2016. If we look below, 85,465 ENS domain names have been registered.
Remember, ENS is NOT DNS
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After researching to find how many total ENS domain names there were total, I may have found it! Or at least some type of answer. Nick Johnson answers a Reddit question about the ENS registry and states there are ' its built in ~1 million name dictionary. Cool.
registered ENS domains
divide by
~1,000,000
= % of total registered domains
85,465
divided by
1,000,000
= 0.085465 or 8.5465% of of the 1,000,000 domain registry...
While it has been a while since I have 'played around with math,' this type of stuff is fun to me and I have come to understand math is hard for others to grasp sometimes. I am aiming to make this hopefully very basic as this article contains concepts and principles very basic.
8.5465% of ENS domain names that are auctioned
0.16759% of total ETH is locked up
100%/8.5465% = 11.7 x 0.0016759 = 1.96092% of all ETH projected to be locked up for the 1-year duration in ENS domain names alone. Now, will this not create a certain level of increased demand for Ethereum? Considering this may only top out around 2%, that's still 2% of Ethereum coins that people cannot use in circulation.
Not only is it possible 2% of Ethereum coins get locked up, but it is VERY possible a robust secondary market forms for Ethereum domain names. Why? Well, why have domains gone for these ungodly figures in the past?
The above figures may seem outrageous, but businesses understand brand perception and how important it is to running a successful business. Search engine optimization is still a thing despite the 1,000's of social media platforms as well. This aligns nicely with the fact that max bids for ENS domains such as Lottery.eth & Tickets.eth had ungodly maximum bids of 100,888 ETH and 181,111 ETH - nearly $35M & $65M when ETH was $350, respectively. You can already find ENS domains for sale on the first emerging secondary markets such as ENSListing.com where you can find LotteryTickets.eth listed for 10,000 Ethereum or, what is currently equivalent to around $3.09M.
Have you purchased any ENS domain names in the auction? Do you have friends who develop Dapps? These ENS domain names are goign to be used to point toward decentralized applications and I'm sure have a host of other uses I have not yet learned about. Please re-steem and upvote to help spread the word and grow this exciting secondary market!
High quality post again! And to your followers. Please join our subreddit /r/doteth and our slack (link in the sidebar)!
You rock @supremebot! I've included the Reddit channel link in the bottom of this post too. Anybody seeing this, please make sure you join the ENS Reddit channel at /r/doteth & slack channel information is in the Reddit channel. Looking forward to building this awesome community together! SteemON!
Very good publication.
Thanks @jfernandez! Just gave you a follow and I'm looking forward to seeing your posts!!
Lovely introduction and top level insight into the the birth of ENS. I have won a few Auctions actually, some of them I am giving away as presents to my friends to get them interested in Blockchain tech. Cheers.
Went ahead and gave you a follow @grandoldduke! I will be continuing to share updates on the ENS Domain development on the market-side of things. Please feel free to re-steem if you can too - I'm trying to bust out as many updates as I can for the community and am finding it hard to get more exposure on the topic.
I appreciate your kind words! I'll be keeping my eye out for your posts as well :)