The Freename Forum

Ron Jackson, operator of the blog dnjournal.com, asked experts from the domain industry - as he does every year - for their assessment of 2024 and what to expect in 2025. The main topics of this year's survey are again AI, .ai, .com, the connection of Web3 to Web2 and still cryptocurrencies. People are also optimistic about the future again.

Ron Jackson's dnjournal.com is entirely dedicated to the trading of Internet domains, lists the prices of domains sold on a weekly basis and also reports regularly on what is going on in the domain industry. Jackson has been surveying several experts on the state of the industry at the beginning of each year for 21 years. This year's survey of 30 experts predicts that 2024 will be a positive year towards the end and that the market will continue to improve in 2025. The respondents are made up of investors, buyers, brokers and developers as well as high-ranking company executives. And if this sounds familiar, we can confirm that this was exactly the essence of the previous year.

The entire industry sees the development of artificial intelligence (AI) as decisive and driving the future. On the one hand, it would help developers and service providers with the development and implementation of landing pages, for example, but also customers and investors with the search and evaluation of domains and portfolio management; Sandeep Ramchandani (Radix) even speaks of a democratization of web development. The hype surrounding the country extension .ai (Anguilla) has almost driven it to the top of the sales league. Paul Nicks (GoDaddy) believes that .ai will outstrip .org domain sales by 2025. As always, however, investors and brokers alike basically agree: .com is king and will continue to be the extension that every company ultimately wants for its own business. For this reason, many .ai companies would switch from their .ai domain to the .com domain, for which Braden Pollock (legalbrandmarketing.com) expects 8-digit US$ prices. This would be financed, among other things, by increased investment from venture capitalists, but also by the rise in cryptocurrency values in recent weeks. As Arif Sengoren (secretbrokerage.com) and Mark Daniel (Domain Holding Group), among others, report, buyers now expect not only the domain, but also (25 to 30 percent, according to Sengoren) the identical social media handles as a package. Also under discussion are more flexible payment options for domains: Mark Daniel, whose company has noticed an increase in buyers over the years, who are being helped with installment payment plans. This goes hand in hand with ever higher prices for premium domains. Among other things, Tessa Holcomb draws attention to problems in contacting domain owners: “Many domain owners have no idea how difficult it is to reach them due to a lack of WHOIS information and what opportunities they are missing out on as a result.

As in the previous year, some brokers and underline investors confirm that trade in premium .com domains was stronger than in the previous year, even if this is not reflected in public sales. There were numerous .com sales in the 7-digit US$ range that could not be disclosed due to NDAs. The measure of all things remained one-word .com premium domains, from which - as already mentioned - more 8-digit US$ prices are now expected. But other endings have also opened up a market via .ai and are in greater demand. However, some believe that the .ai hype will come to an end this year. Another aspect of the survey is the connection between Web2 and Web3. With the connection of Web3 to Web2 and the new government in the USA, cryptocurrencies are once again seen as acceptable and promising for the future. Mention is also made of the hope for a necessary strengthening of security on the Internet, including in connection with NIS-2.

The “State of the Industry 2025” report does not offer anything really new compared to the previous year. 2024 was much better than expected for most - and certainly better than 2023. 2025 looks no different: the industry is rubbing its hands together and expecting a great business year.

The “State of the Industry 2025” report by Ron Jackson (dnjournal.com) can be found at:
https://www.dnjournal.com/cover/2025/january.htm

I found the following quotes related to Web3 domains:

We predict a continued increase in sale prices in not just .com, but also other leading non .com extensions as well as an expansion in the use of Web3 domains. It's possible the stock market, and other asset prices (real estate, crypto) take a hit by mid year with consumer and government debt reaching unsustainable levels which could affect overall sales but high quality domain market will continue to be resilient.

Brian Harbin

Rise of Decentralized Domains and Web3 Integration: Decentralized naming systems such as ENS and Handshake are attracting Web3 enthusiasts. Although mainstream adoption is limited, the secondary market for blockchain-based domains is growing, presenting a specialized niche for brokers knowledgeable in digital assets.

Joe Uddeme

With crypto markets showing signs of recovery, we anticipate renewed interest in blockchain, NFTs, and Web3-related domains. However, the market isn't without challenges, and regulatory changes in tech sectors could affect domain valuations. We're addressing these challenges by offering flexible payment structures and comprehensive market analysis to help clients make informed decisions in uncertain conditions.

Kate Buckley

What surprises me even more is the slow adoption of cryptocurrency in the domain market. Apart from CryptoExchange.com and a handful of registrars and marketplaces, it seems like the industry hasn’t fully embraced its potential. The importance of crypto integration feels underestimated, especially considering how seamlessly it could align with domain transactions.

Arif Sengoren