Growth Curves Web3 Registrations Versus Legacy gTLDs

The evolution of digital identity and online presence has historically been governed by the Domain Name System, with generic top-level domains (gTLDs) like .com, .net, and .org serving as the global standard since the 1980s. These domains underpin the structure of the internet as we know it, allowing individuals, businesses, and institutions to stake a claim on the web. However, in the past few years, a parallel naming universe has been emerging within the decentralized web, where blockchain-based domains such as .eth, .crypto, .zil, and .bnb are beginning to reshape the concept of domain ownership and functionality. A critical point of analysis lies in comparing the growth curves of Web3 domain registrations versus legacy gTLDs, not only in raw numbers but also in user adoption velocity, market psychology, and utility-driven momentum.

Legacy gTLDs grew slowly but steadily in their early years. When the Internet Corporation for Assigned Names and Numbers (ICANN) introduced the first gTLDs, the rate of adoption was closely tied to the gradual increase in internet access, web development literacy, and enterprise digitization. It wasn’t until the dot-com boom of the late 1990s that domain registrations truly surged, fueled by speculative demand and a gold-rush mentality. By 2000, there were approximately 20 million domain names registered globally, with .com accounting for the lion’s share. Over the following two decades, that number grew to over 350 million, supported by an ecosystem of registrars, hosting providers, and corporate demand for brand protection.

In contrast, Web3 naming systems, which use blockchain protocols to register, resolve, and manage domains, have demonstrated a markedly different growth pattern. Ethereum Name Service (ENS), launched in 2017, saw modest initial adoption, with a niche group of Ethereum developers and enthusiasts minting names like alice.eth and defi.eth. However, the real inflection point arrived in 2021, during the broader crypto bull market. Fueled by the rise of NFTs, DAOs, and DeFi, ENS experienced exponential growth, at times surpassing hundreds of thousands of registrations per month. Unstoppable Domains followed a similar trajectory, issuing .crypto and .nft names to users eager to claim personalized wallet identifiers, decentralized website URLs, or simply hold digital real estate with perceived future value.

What makes the growth curve of Web3 names distinctive is not only the speed but also the structural characteristics of their distribution. Whereas legacy domains were largely registered by businesses for web presence, email hosting, and brand extension, Web3 names are often personal, identity-driven, and multifunctional. A single ENS domain can serve as a wallet address, a login credential for decentralized apps, a digital calling card, and even a tokenized asset for resale. This multifaceted utility has led to intense early interest, particularly among crypto-native communities, with entire floors of NFTs on platforms like OpenSea composed of ENS names or numeric handles like 123.eth.

Another key difference lies in supply management and monetization. Traditional gTLDs are overseen by registries operating under ICANN regulation, with yearly renewal fees, registrar partnerships, and centralized administrative control. In contrast, most Web3 domain systems are permissionless and programmatic. ENS domains are ERC-721 tokens, tradable and transferable on Ethereum, with ownership and expiry handled through smart contracts. Some Web3 registries, like Unstoppable Domains, even offer domains with no renewal fees, presenting a fundamentally different value proposition. The scarcity models also vary—Web3 domains can enforce unique structures like subdomain hierarchies or number-only constraints, creating speculative micro-economies and collector subcultures.

Despite their rapid growth, Web3 domains remain small in absolute terms compared to gTLDs. ENS crossed the 2 million mark in active registrations, a fraction of .com’s scale, which exceeds 160 million domains alone. However, the pace of growth in relative terms has been astonishing. From 2020 to 2022, ENS experienced a more than tenfold increase in registrations, compared to low single-digit percentage growth for most gTLDs during the same period. This acceleration reflects not just hype but the integration of Web3 naming into a broader decentralized stack, where identity, finance, communication, and access control converge.

Importantly, the psychological underpinnings of Web3 domain adoption also diverge from legacy systems. Many early gTLD registrations were speculative or practical in nature—an online storefront, a branded URL, or a parked page for future use. Web3 names, however, are often emotionally charged, seen as personal statements of belonging in the decentralized world. For example, the widespread adoption of three- and four-digit ENS names led to the formation of decentralized autonomous organizations like the 10k Club, which centers around ownership of numeric ENS tokens. This level of community and cultural engagement is largely absent from the gTLD space, where names are functional but rarely form the basis for collective identity.

Looking ahead, the convergence of Web2 and Web3 naming systems will be a defining challenge and opportunity. Efforts are already underway to bridge the two, with services that resolve .eth addresses in traditional browsers via DNS-over-HTTPS, or that integrate Web3 names into email and messaging protocols. If interoperability continues to improve and wallet-native identity becomes the norm, the growth trajectory of Web3 domains could begin to cannibalize legacy systems, especially among younger, digitally native users.

In conclusion, the growth curves of Web3 naming systems versus legacy gTLDs are shaped not just by technology, but by philosophy, utility, and community dynamics. While legacy gTLDs represent the institutional past of the internet, Web3 names embody its decentralized future. The former offers stability, ubiquity, and regulation; the latter delivers autonomy, programmability, and cultural resonance. The speed at which Web3 registrations have taken off suggests a paradigm shift in how users think about naming and identity online, and as the tools and infrastructure continue to mature, their share of the digital namespace will only continue to expand.

The evolution of digital identity and online presence has historically been governed by the Domain Name System, with generic top-level domains (gTLDs) like .com, .net, and .org serving as the global standard since the 1980s. These domains underpin the structure of the internet as we know it, allowing individuals, businesses, and institutions to stake a…