What is the value of the Unisat domain name, given that the total transaction volume since its launch is only $40,000?

What is the value of the Unisat domain name, given its transaction volume is only $40,000 since launch?

This is not the first Bitcoin-based domain name system.

On the last day of May, Unisat officially launched domain name trading, supporting two types of domain names: .sat and .unisat. This long-discussed feature in the community has finally met with users. This Bitcoin-based domain asset has also become a “partial hot spot” in the BTC ecosystem.

However, unlike the previous hype of BRC-20 and Bitcoin NFT, investors’ interest in domain asset trading seems to be far less than before. Now, after a few days of launch, how does it perform, and is it worth laying out?

Less than 500 transactions, with a turnover of only $40,000

As of now, the transaction records of the Unisat market show that .sats domain names have a total of 398 transactions, and .unisat has a total of 55 transactions.

After being online for more than 5 days, this dismal number has to cause concern for investors. Specifically, the turnover is even more sluggish. Taking the more active .sats domain name as an example, Odaily Star Daily found that the current total turnover is only $40,100, and 79% of the domain name transaction prices are below $30.

So how about Ethereum’s ENS transaction data? According to NFTGo data, the total transaction amount of ENS during the same period was 92.55 ETH, equivalent to approximately $174,000.

Of course, as a well-known old project, this comparison is not fair to .sats domain names, but this data can also be used as a perspective for horizontal observation.

From the supply side, there are currently 18,232 .sats domain names in the market, which is 45 times the total transaction volume so far.

However, this data does not have too much reference value. Due to the high customizability of domain names, there are long-tail domain names in various chains, and these domain names are difficult to trade even once during their entire lifespan.

Currently, the more active .sats are short-position pure digital domain names.

The Unisat market also roughly divides domain names into 6 categories: pure digital under 100, pure digital under 1000, 1 letter and 1 number combination, 2 letters, 3 letters, and complex combinations.

Domain names are fairly distributed, but landing scenarios are limited

Sats Names domain system aims to build a bitcoin domain ecosystem constructed by bitcoin users and developed entirely on bitcoin.

According to the official documentation, because this domain name uses Ordinals to store it on the bitcoin network, all name states are stored on bitcoin. In terms of narrative, this domain name may be more “orthodox.” The true state of all names can be independently calculated by any client without the need for other databases or other networks.

One feature that sets Sats Names apart from other domain name systems is that it has no smart contract acting as an administrator and no token economics, pre-mining, governance, or incentives.

Interestingly, the domain registration fee will be provided to bitcoin miners, and the domain issuer does not generate revenue through domain name sales. This is also different from some common domain name projects.

Currently, this domain name system can be used in Nostr or used as a lightning network address.

A bitcoin-themed domain name system was not the first to appear in the crypto world. There are already two projects with the .btc domain.

Previously, the bitcoin smart contract platform Stacks had launched the .btc domain. Stacks has been around since 2018, using PoX consensus to link the Stacks blockchain with bitcoin, giving developers the ability to perform smart contract and computation on the Stacks network. The BTCDomain project also created another set of .btc domain name systems based on Ordinals. Odaily Star Daily has briefly introduced this project in the article “In the Rapidly Developing Bitcoin Ecology, Which Stage Has It Reached?”

Unlike mainstream public chains, BTC network dApps are not active, and the usage scenario for domain names is still quite limited. The decentralized bitcoin network also makes the market more free and open, and there are no “semi-official” domain name services with official background in the bitcoin network. Therefore, almost all domain name systems have equal opportunities. We can predict that there may be more bitcoin domain name services joining the market competition in the future.

Currently, the development of bitcoin domain names is still in its early stages, and its infrastructure and use cases are not perfect. With the development of the bitcoin ecosystem, where will the domain name service go, and which solution will dominate the bitcoin network’s domain name market, still remains to be tested by time.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

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