Yes, but it’s not clear how much.
It might seem crazy to talk about the domain name market losing steam. After all, this week will be the sixth in a row that Ron Jackson reports a seven figure transaction on his domain sales reports.
But what about the investor-to-investor market? At some point, it’s hard to imagine that some of the more active domain investors spending over $1 million on a Bored Ape Yacht Club jpg does not mean money that would have gone into domains is going into NFTs.
I posed this question on Twitter this week and received a lot of responses, both public and private via DM. Here are some of the people who said yes, they are spending money on NFTs that would be going to domains:
I did buy 2 names this week but yes, absolutely.
— ariel.btc (@takelightly) August 24, 2021
Yes. Domains are boring and overpriced at this point
— barman (@ppcbz) August 23, 2021
Via DM, a domain investor told me he’s absolutely focusing more on NFTs. He said he has made much more from NFTs during the first half of the year than from domains. A couple of other domain investors told me they’ve diverted money destined for domains to NFTs, but they’re also continuing to invest in domains.
People are certainly making quick money in NFTs. And the domain market was getting a bit overheated, as Josh Reason points out:
No. I’d love to buy more domains however the wholesale market has been overpriced for too long and until it comes down to something more reasonable I’m in a holding pattern.
— Maximus | The most colorful ape 🎨 (@Maximus_NFT) August 24, 2021
The bigger question is if this is just a flash in the pan.
Stay tuned for Monday’s podcast with Shane Cultra, where we talk about domain investors piling into NFTs.