The total transaction volume since its launch is only US$40,000. How much is the Unisat domain name worth?

On the last day of May, Unisat officially launched domain name trading, supporting two types of domain names: .sat and .unisat. This feature, which has been circulating in the community for a long time, has finally been officially introduced to users. This domain name asset based on the Bitcoin network has also become a "local hotspot" in the BTC ecosystem.

However, unlike the previous popularity of BRC-20 and Bitcoin NFT, investors' interest in trading domain name assets seems to be far less than before. Now that it has been online for several days, how is its data performance, and is it worth investing in?

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

So far, transaction records on the Unisat market show that 398 .sats domain names have been traded and 55 .unisat domain names have been traded.

After five days of being online, this dismal figure has caused concern among investors. The transaction volume is even more sluggish. Taking the more active .sats domain name as an example, after counting all transactions, it was found that the total transaction volume is only US$40,100, and 79% of the domain names were sold at prices below US$30.

What about Ethereum’s ENS transaction data? NFTGo data shows that the transaction amount of ENS in the same period was 92.55 ETH, or about 174,000 US dollars.

Of course, as a well-known and long-established project, such a comparison is not fair to the .sats domain name, but this data can also be used as a perspective for horizontal observation.

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

However, this data does not have much reference value. Due to the high degree of customizability of domain names, there are a large number of long-tail domain names in the domain name assets of each chain for a long time, and these domain names are difficult to trade once throughout their entire lifespan.

Currently, the .sats domain name with relatively active transactions is a short, purely numeric domain name.

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

Domain names are sold fairly, but the application scenarios are limited

The Sats Names domain name system aims to build a Bitcoin domain name ecosystem built by Bitcoin users and developed entirely on Bitcoin.

According to the official documentation, since the domain name is stored on the Bitcoin network using Ordinals, all name status is stored on Bitcoin. From a narrative point of view, the domain name may be more "orthodox". No other database or other network is required to obtain the status of the domain name, and any client can independently calculate the true status of all names.

One feature that is different from other domain name systems is that Sats Names does not have a smart contract that acts as an administrator, and has no token economics, no pre-mining, no governance, and no incentives.

What’s more interesting is that the domain name registration fee will be provided to Bitcoin miners, and the domain name issuer does not earn income through domain name sales. This is also quite different from some common domain name projects.

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

The Bitcoin-themed domain name system is not the first to appear in the crypto world. There are currently two projects for the .btc domain name alone.

Previously, the Bitcoin smart contract platform Stacks had launched the .btc domain name. Stacks was launched as early as 2018. The project uses PoX consensus to link the Stacks blockchain and Bitcoin, and gives developers the ability to run smart contracts and perform calculations on the Stacks network. The BTCDomain project also created another .btc domain name system based on Ordinals.

Different from the mainstream public chains, BTC network dApp is not active, and the use scenarios of domain names are still quite limited. The decentralized Bitcoin network also makes the market more free and open. Some "semi-official" domain name services with official backgrounds of public chains do not exist on the Bitcoin network. Therefore, each domain name system has almost the same opportunities. We can predict that more Bitcoin domain name services may join 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. As the Bitcoin ecosystem develops, where will the domain name service go and which solution will occupy the domain name market of the Bitcoin network remains to be tested by time.