Crypto Domains Are More Than Just Wallet Addresses
From simple transaction handles to the foundation of decentralized identity — discover why .eth and other Web3 domains are shaping the next generation of the internet.
Published on
Nov 7, 2025
The Evolution of Digital Ownership
Over the past decade, digital ownership has evolved dramatically. In Web2, domain names became the real estate of the internet — valuable digital assets defining brands, identities, and visibility. Now, with the rise of Web3, a new class of digital assets is emerging: crypto domains.
Extensions like .eth, .crypto, .x, .nft, and .wallet are no longer experimental curiosities — they represent a fundamental shift in how we define identity and ownership online. Unlike traditional domains registered through centralized registrars, Web3 domains are stored directly on the blockchain, making them censorship-resistant, tradeable, and fully owned by the user as NFTs.
.eth — The Powerhouse of Web3 Domains
Among all Web3 domain ecosystems, .eth stands as the most dominant and influential. Managed by the Ethereum Name Service (ENS), it connects readable names to Ethereum wallet addresses, DApps, and decentralized websites.
ENS has seen extraordinary growth: over 2.2 million .eth domains have been registered, with record-breaking yearly increases since 2021. This surge reflects not just speculation, but adoption — individuals, DAOs, and major organizations are using .eth as their universal identifier in the decentralized world.
ENS operates on a renewal model, with pricing designed to balance scarcity and accessibility:
3-letter names: around $640/year
4-letter names: around $160/year
5+ letter names: around $5/year
By contrast, platforms like Unstoppable Domains offer lifetime ownership for extensions like .x, .crypto, or .nft, where users pay once and hold the domain forever on the blockchain — no renewals, no centralized control.
More Than Wallets: The Expanding Use Cases of Crypto Domains
One of the biggest misconceptions about crypto domains is that they only simplify wallet addresses. In reality, these names are evolving into universal digital identities across the decentralized web.
Here’s what they can already do — and where they’re heading:
🌐 Decentralized websites: Host IPFS-based websites directly on-chain.
💬 Messaging & communication: Send encrypted messages using blockchain-linked IDs.
👤 Cross-platform identity: Use your domain as a consistent login for DApps, wallets, or even social networks like Farcaster or Lens.
🕹 Gaming & avatars: Represent your on-chain profile in gaming ecosystems.
🏛 DAO & governance: Tie voting rights or participation to domain ownership.
🪪 Reputation systems: Build verifiable, blockchain-based social and professional identities.
In essence, crypto domains are becoming the identity layer of Web3 — your username, website, wallet, and digital passport all in one.
Explore our Web3 domain portfolio here.
Real-World Momentum: When Industry Leaders Go Web3
What was once a niche for crypto enthusiasts has now reached the highest levels of global tech leadership.
The current President and CEO of PayPal, Alex Chriss, proudly lists his acce.eth domain in his X (Twitter) bio — a small but powerful symbol of where the industry is heading. It’s a public endorsement of decentralized identity, signaling that even the biggest players see long-term potential in blockchain-based naming systems.
And he’s not alone. Notable figures and organizations like Vitalik.eth (Ethereum’s co-founder), a16zcrypto.eth (Andreessen Horowitz), and coinbase.eth have all embraced ENS. Major wallets and dApps integrate directly with Web3 domains, while venture capital firms continue to pour billions into the Web3 identity and infrastructure sectors.
Analysts predict that the Web3 identity market could reach tens of billions of dollars within this decade — as interoperability, ownership, and decentralization become central pillars of the next internet generation.
Ownership Models: One-Time vs. Subscription
Not all crypto domains follow the same model.
ENS (.eth) relies on annual renewals, ensuring active usage and decentralized governance. Unstoppable Domains, meanwhile, offers a one-time purchase model for domains like .x, .crypto, or .wallet, appealing to users who prefer permanent, fee-free ownership.
Both systems share a core philosophy — giving users true control. Whether renewable or permanent, each Web3 domain is minted as an NFT, transferable, tradeable, and verifiable on-chain.
Shorter names (3- and 4-letter domains) are already considered scarce digital real estate, with a growing secondary market echoing early Web2 domain trading — but now, ownership is transparent and provable on-chain.
The Future of Digital Identity
As Web3 matures, crypto domains are poised to become the universal identity layer of the decentralized web. They’ll connect wallets, social media, payments, and even professional credentials under a single, self-sovereign identity.
The shift from “wallet handle” to “digital identity” marks a deeper transformation — one where users truly own their names, data, and presence online.
In a few years, owning your name on the blockchain might matter just as much as owning your .com on the web once did.