The domain name market, often referred to as the "most important real estate on the internet," is experiencing a significant liquidity crisis due to outdated Web2 trading models, according to a Cointelegraph commentary. Currently, domain name transactions can take three to six months to complete, with broker commissions reaching up to 30%. This inefficiency contrasts sharply with the rapid settlement capabilities of tokenized real estate, which can be divided and settled within minutes.
The commentary warns that without swift adoption of tokenization, allowing domain names to become divisible assets for instant settlement and DeFi integration, the market risks losing value and dominance. Emerging protocols like ENS could potentially overtake traditional domain systems if they fail to modernize.
Domain Name Market Faces Liquidity Crisis, Urgent Need for Tokenization
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