The recent surge in Ethereum Name Service (ENS) and other Web3 domain services like Space ID has sparked discussions about their broader utility in decentralized identity (DID) and the Web3 ecosystem. While domain registration fever dominates headlines, these platforms are evolving into foundational infrastructure for a user-centric internet.
The Rise of Web3 Domain Services
ENS Ignites the Market
Since April 2022, ENS domains—especially numeric combinations like 3-5 digit addresses—have seen unprecedented demand. Key highlights:
- 75% of ENS’s total $61.5M revenue was generated in 2022 alone
- Peak registration months: May ($9.56M) and April ($7.83M)
- Recent rebound: August saw 300K+ new domains (2.17M total), with September tracking to exceed prior months
Ecosystem Expansion
- Space ID (.bnb domains) gained traction with seed funding and low registration costs (0.0418 BNB avg.)
- .bit (formerly DAS) reported record daily signups (13.8K total accounts) on Nervos Network
Web3 Domains: More Than Digital Real Estate
Brand and Identity Applications
Corporate Adoption:
- Web3 projects routinely acquire brand-matching ENS domains (e.g., Galxe’s rebranding)
- Web2 giants like Gucci (gucci.eth), Tiffany (tiffany.eth), and Budweiser (beer.eth) have entered the space
Personal Branding:
- Serves as human-readable wallet addresses (vitalik.eth instead of 0x...4d7)
Functions as NFT-backed social profiles with integrated:
- Cross-chain addresses (BTC, DOGE, etc.)
- Social media links (Twitter, GitHub)
- Decentralized storage (ARweave, IPFS)
The DID Revolution: Web3’s Identity Layer
From Domains to Decentralized Identifiers
Projects like ENS and .bit are pivoting to become cross-chain DID systems, addressing critical Web3 needs:
| Traditional Web2 IDs | Web3 DID Advantages |
|---|---|
| Controlled by platforms (Google/Facebook) | User-owned via private keys |
| Fragmented across services | Unified identity across dApps |
| Prone to data breaches | Cryptographic security |
Key Use Cases
- Simplified Transactions: Send crypto to terry.eth instead of complex addresses
- Credit Systems: On-chain reputation scoring via transaction history + attested off-chain data
- Censorship Resistance: Self-sovereign identity profiles without third-party takedowns
FAQs: Decoding Web3 Domain Value
Q: Why are numeric ENS domains valuable?
A: Like "phone vanity numbers," memorable combinations (123.eth) have speculative and utility demand for branding.
Q: How does ENS compare to traditional DNS?
A: While DNS manages website routing (.com), ENS enables:
- Wallet-to-wallet interactions
- Portable identity across Ethereum apps
Q: Can Web3 domains replace social media handles?
A: Potentially—they allow verifiable ownership (via NFTs) and integration with platforms like Mirror and Farcaster.
The Future: Domain Services as Web3 Infrastructure
👉 Explore how OKX Wallet integrates ENS for seamless transactions
As adoption grows, expect:
- Expanded DID Features: SBTs (Soulbound Tokens) for credentialing
- Multi-chain Interoperability: One identity for Ethereum, Solana, etc.
- Enterprise Adoption: Corporate DID solutions for decentralized HR and KYC
Web3 domains are evolving from niche assets to the backbone of a user-controlled internet—where your identity and data truly belong to you.