--- title: "Digital Assets - Domains, NFT’s, Hype & Valuation" description: "Comparing NFT art prices with premium domain values: Beeple's $69 million sale versus Voice.com at $30 million, and why scarcity drives both markets." url: https://gritbrokerage.preview.multisites.ai/post/digital-assets-domains-nft-s-hype-valuation publisher: Grit Brokerage contact: https://gritbrokerage.preview.multisites.ai/contact offer: https://gritbrokerage.preview.multisites.ai/inquiry --- [Market insights](https://gritbrokerage.preview.multisites.ai/blog?topic=market-insights) # Digital Assets - Domains, NFT’s, Hype & Valuation This post compares NFT art with premium domain names as scarce digital assets. Beeple's Everyday sold for $69 million at Christie's, while the highest recorded domain sale, Voice.com at $30 million, is less than half of that. Grit Brokerage argues domains offer lifetime utility and remain undervalued. By Grit BrokerageMay 7, 2021Updated May 8, 20213 min read ![Digital artwork NFT compared with a premium domain name as scarce digital assets](https://gritbrokerage.preview.multisites.ai/_astro/a53ed9_4e9bda4d1fda4a379cf0bf4396276a7e.C6DI2ue0_ZMe3P9.webp) As I write this piece, many premium domain speculators are scratching their heads and somewhat frustrated from watching NFT (non fungible token) digital artwork sell for astronomical amounts of money on marketplaces like OpenSea and in live auctions. Meanwhile, what some in our industry dub the _original NFT_; domain names, which provide their owners a lifetime of utility, SEO benefits and brand alignment, in most cases struggle to get offers above the liquid value. This is not to say that domains are on the decline, in fact, good ones have never been more in demand. The domain market is extremely hot! However, as brokers, we still spend a great deal of time educating potential buyers of the importance and value in owning the exact brand matching .com of their business or domains represent the name of a product or service they offer. We do not expect our job to be an easy one and this is not a rant about NFTs. I actually think that NFTs are intriguing and am excited to see where the whole non fungible digital ecosystem will be in another couple of years. That said, it appears we are in a hype cycle for NFTs as they begin to carve out a whole new digital asset class. At the moment, digital artwork and caricatures are what is bringing NFTs to the public spotlight as some pieces like Beeples’ “Everyday” that brought in $69 million [from a Christie’s Auction](https://www.christies.com/features/Monumental-collage-by-Beeple-is-first-purely-digital-artwork-NFT-to-come-to-auction-11510-7.aspx). The driving force behind the value of the NFTs, like fine art and premium domain names, is scarcity. When a new NFT is minted, the creator gets to decide how many digital tokens they want to assign to each piece. So, an artist can create scarcity of a digital piece simply by minting a piece of artwork as a 1/1 or 1/5 limited edition, etc. Not just any NFT is selling for mega money, the ones bringing the highest paydays are created by established artists who had a large following leading up to the craze. That said, there are many different types of NFT art that are selling for a lot of money. It is difficult to comprehend even with the scarcity aspect, why someone would pay so much for ‘rights’ to a digital file. Afterall, there isn’t any utility to NFT artwork other than being able to enjoy and share it. There are other types of NFTs coming that will provide utility down the road, but for now I am comparing NFT art valuation to premium domains. When considering domain name valuation, the extension, length, pronounceability, keyword search volume and other factors help determine what the domain ultimately can sell for. The highest ‘recorded’ domain sale of Voice.com for $30M is less than half of the highest NFT sale, which given the extraordinary utility of domain names is quite mind boggling. With a domain name, you own digital property that you can build on for a lifetime, use as your brand, email and basically entire digital identity for an individual, organization or company. Premium domains are amongst the most scarce assets in the world. There is a finite supply of words in our lexicon and a small percentage of the words or word combinations actually hold value when it comes to domains. That is why one word and short .coms are continuing to command higher and higher prices. However, we feel that domains are actually still severely undervalued and overlooked. Even with a big uptick in the market and many great sales being booked this year, it is still an uphill battle to get a proper retail price for a domain. If the most sought after NFT art pieces can sell for tens of millions of dollars, should be seeing domain prices in the hundreds of millions of dollars given their utility and importance in business and commerce? In any case, it is a very exciting time for digital assets. Many domain investors are starting to reassess the pricing on their best domains. As more and more money flows into the digital world, we expect to continue seeing valuations of on the rise as well. That said, if you had $100k to spend as an investment and had to choose, do you think you would go for an NFT artwork or a premium domain? We’d love to hear your thoughts in the comment section below! ! Beeples’ $69M NFT - Source ([WP:NFCC#4](https://en.wikipedia.org/wiki/Wikipedia:Non-free_content_criteria#4)) ## Questions this post answers ### How do NFT prices compare with domain sale prices? The post says Beeple's Everyday sold for $69 million at a Christie's auction. The highest recorded domain sale, Voice.com for $30 million, is less than half that amount, despite the lifetime utility domains provide. ### What drives the value of NFTs and premium domains? Scarcity drives both. NFT creators choose how many tokens to mint, and premium domains are limited because the lexicon has a finite supply of words. Domain value also depends on extension, length, pronounceability and keyword search volume. ### Does Grit Brokerage think domains are undervalued? Yes. The post says domains are still severely undervalued and overlooked, and that it is still an uphill battle to get a proper retail price. It expects valuations to rise as more money flows into the digital world. ## Terms in this post - [Premium domain](https://gritbrokerage.preview.multisites.ai/glossary/premium-domain) - [Search volume](https://gritbrokerage.preview.multisites.ai/glossary/search-volume) - [Domain name](https://gritbrokerage.preview.multisites.ai/glossary/domain-name) - [.com](https://gritbrokerage.preview.multisites.ai/glossary/dot-com) - [.org](https://gritbrokerage.preview.multisites.ai/glossary/dot-org) ## Keep reading - [Premium Domain Names Evolving Into An Asset ClassMichael Law argues premium domains are scarce, undervalued and still not a formal asset class. Appraisals can be off by orders of magnitude, and there is no Kelley Blue Book for domains. He cites education and liquidity as the two barriers and expects prices to keep rising.](https://gritbrokerage.preview.multisites.ai/post/premium-domain-names-evolving-into-an-asset-class) - [Domain Assets - Shifting End User PerspectiveDomain broker Michael Law explains how Grit Brokerage responds when buyers say a premium domain does not fit their budget. The post argues a premium domain is an appreciating asset with lifetime utility, SEO, security and brand alignment, not a recurring expense like a web hosting bill.](https://gritbrokerage.preview.multisites.ai/post/domain-assets-shifting-end-user-perspective) - [How Much Is My Domain Worth? Domain Valuation ExplainedA domain is worth what a specific buyer will pay for it. Start with comparable sales of similar names, then adjust for length, extension, keywords, and brand fit. Treat automated appraisals as rough guides. The same name can be worth far more to an end user than to an investor.](https://gritbrokerage.preview.multisites.ai/guides/domain-name-valuation) - [LLL, NNN, and 4-Letter Domains: How Short Domains Are ValuedA three-letter .com is usually worth what a corporate acronym buyer will pay, not a fixed multiple. Public sales run from under $20,000 for weak letter sets to well over $100,000 for strong ones. Value depends on the letters, whether they form an acronym or word, and how many companies could use them.](https://gritbrokerage.preview.multisites.ai/guides/short-domain-value) - [12 Case Studies - Founders Discuss How and Why they Acquired a Better Domain Name for their BrandThis post collects public interviews with founders and executives who acquired a better domain for their brand. Cases include DataRecovery.com for $1,660,000, Ring.com for $1,000,000 in 2016 and Voice.com for $30,000,000 in 2019. Grit Brokerage says the companies it sold premium domains to call the move one of their best decisions.](https://gritbrokerage.preview.multisites.ai/post/12-case-studies-founders-discuss-how-and-why-they-acquired-a-better-domain-name-for-their-brand) - [Why Prices of Premium Domain Names Will Continue to AppreciateGrit Brokerage defines premium domains and gives three reasons prices should keep rising: more people and business moving online, a growing pool of investors paying more, and scarcity, with registered domains near 400 million. It also sees short term opportunities for buyers with cash during economic uncertainty.](https://gritbrokerage.preview.multisites.ai/post/why-prices-of-premium-domain-names-will-continue-to-appreciate) ## Buying or selling a domain? Call, text or email. Responsiveness is our trademark, and a broker answers, not a form robot. [Talk to a broker](https://gritbrokerage.preview.multisites.ai/contact) [Call (442) 500-GRIT](tel:+1-442-500-4748)