GoDaddy

analysis A Look At What Sells In XYZ

Catch.Club Catch.Club

Do you invest in .XYZ domain names?

  • This poll is still running and the standings may change.
  • No

    44 
    votes
    34.6%
  • No, but with recent sales, I am considering adding some

    10 
    votes
    7.9%
  • Yes, I have a few, but less than 5% of portfolio

    58 
    votes
    45.7%
  • Yes, a significant part of my portfolio is .xyz

    12 
    votes
    9.4%
  • All of my names are .xyz

    votes
    2.4%
  • This poll is still running and the standings may change.

Aftermarket sales of .xyz are having a stellar 2021. Even at the midway point of 2021, the sales dollar volume has more than tripled over the 2020 whole year total. To put it in perspective, during the first half of 2021 the sales volume of .xyz is approximately equal to the combined sales volume for the .gg, .biz and .us extensions over the same period. The volume is still a factor of 6.5 less than the .net sales in early 2021, and orders of magnitude below .com volume. In my look at domain name sales during the first six months of 2021, I noted the rapid rise of .xyz.

Currently .xyz is the most registered new domain extension by a considerable margin, at just over 3.6 million .xyz registrations according to nTLDStats.

In the poll associated with the article After .COM What Comes Next, more than 6% of NamePros respondents voted for .xyz as the next choice after .com, although the extension did place after .net, .io, .co and .org.

Recently the name drop.xyz sold for $30,000, the highest NameBio-recorded sale in the extension since 2016. That sale was by NamePros member @syedmairaj, and you can read more about the drop.xyz sale and negotiation here. While that sale was not one of hers, @DNGear has been selling premium .xyz names regularly, such as Beacon.xyz that sold for $24,888.

In this article I take a look at .xyz sales over $1000 from the last year, the type of names that sell, and how they are being used.

The Bumpy Ride For XYZ Sales Over The Years

While the 2021 sales volume for .xyz is huge compared to recent years, the extension was selling at a similar clip in the first few years, as the indicated on the graph below. It should be pointed out that in the early years there were many registry premium sales included in the total, whereas in 2021 essentially all of the aftermarket sales are by domain investors. In order to block out most wholesale acquisitions, the volumes reported only reflect sales at $300 and more.

GraphAnnualXYZ.png


So what happened to cause the huge drop in aftermarket sales in 2016? In late May 2016 .XYZ founder and CEO Daniel Negari announced “the biggest domain promotion the world has ever seen!” For a short period of time registrations in the extension were just a penny. The huge influx of cheap registrations essentially killed the aftermarket, and it has taken years to recover.

Sales from Past Year in .XYZ

I took a look at significant .xyz aftermarket sales, that I defined as $1000 and up, from the past 12 months. There were 82 sales in the analysis, with the majority from 2021 (only 14 were second-half 2020 sales). The average price was $4875, with the breakdown shown below. The largest sales were from recent months, and prices are rising.

GraphPricesXYZ.png


I was interested in what type of names sell, so went through the list categorizing by hand. Single word domain names dominate, representing the vast majority of sales. A few notes on my classification system and observations.
  • Terms from science and math appeared frequently in the list, names such as entropy, velocity. fission, fractal, spectrum, and variable.
  • There were some other technology-related names, such as metaverse, protocol and chia.
  • I divided the remaining dictionary words into more and less common words. While my division is somewhat arbitrary, I categorized words like drop, canvas, frontier, nature. split, read and islands as common. Some examples of names I listed as uncommon, or more accurately less common, were echelon, deca, fleek and transcendence. Both common and less commonly used dictionary words appear frequently.
  • There were a few proper names on the list, including Ryan, Napoleon and Nadia.
  • There were no numeric names, and just one alphanumeric.
  • There were a number of plurals in the list, but no names with hyphens.
The full category distribution is shown below.

GraphTypeXYZ.png


I also looked at the length of each name, obtaining the results shown below. The average length is 7.1, with a range of 4 to 14 letters. The number of sales drops off strongly after 9 or 10 letters.

GraphLength.png


Number of Extensions

Among the screening metrics commonly used by domain investors, is the number of TLDs that term is registered in. For each of the 82 names, I checked this using dotDB. The average number of registered extensions was 172, but with considerable range from 2 to 571 TLDs. The most registered term was metaverse.

GraphRegressionXYZ.png


While the higher-value sales correspond to terms registered in 140 or more other extensions, the correlation of sales price with number of TLDs registered is weak. The R2 coefficient is just 0.32.

How Old?

The .xyz extension came into general availability on June 2, 2014. The highest-value sale, drop.xyz, has been continuously registered since registration on the opening day of general availability.

I wondered if most of the significant sale names were registered in the early years, so for each of the 82 sales of $1000 and more I checked Whois. I found considerable variability in age, as the distribution of creation years shows. The average age was about 3 years. Some names sold within a few months of registration, though.

GraphAgeXYZ.png


How are the Developed Names Used?

For each of the 82 names, I checked if they had an operating website.
  • About 44% of the names had a developed website.
  • Another 4% were in redirection. I had wondered if a number were acquiring the .xyz to protect their brand, but that appears not a major factor in the sales. The Clubhouse people did acquire their name to redirect to their .com.
  • Only 3 names were apparently for sale again.
  • 49% were not developed at this time. While that might seem high, it is consistent with similar analyses on other extensions. A lot of names, even those that sell for significant amounts, do not get developed promptly.
It should also be kept in mind that many of these .xyz sales were from only a few months ago.

After looking at how the developed names are used, here are my impressions.
  1. The vast majority are in use by early-stage startups in hot areas such as blockchain, cryptocurrency, collaboration, and networks.
  2. One of the biggest sales, Beacon, is in use as a community-focused cryptocurrency fund. Another cryptocurrency initiative within the developed sites was Soteria.
  3. Several developed names are being used by venture capital funds, such as Patron.
  4. Defi is a common theme, such as Frontier, the chain-agnostic DeFi aggregator service.
  5. Collaborative networks find use, such as Mesh.
  6. The site is currently minimal, but the interesting name Islands is offering a service where creators host paid memberships for fans.
  7. A number of the developed sales are related to NFTs in some way. Props offers a service to easily launch loyalty tokens and NFTs. Manifold is also engaged in NFT for the creative and crypto communities.
  8. Although their site is up, Gateway describes themselves as launching soon. It will build or acquire direct-to-consumer companies.
  9. I had thought Pallet might be used for a manufacturing or supply chain business, but it is an ‘infrastructure for modern hiring.”
  10. There are a few digital content and marketing businesses, such as Motive.
  11. Switchboard uses data feeds to power decentralized applications.
  12. Propel is a decentralized auction platform for raising capital.
  13. The Minty site describe themselves as NFT-powered investing, definitely a hot area at the moment.
  14. There are a few, but only a few, that would appear to be used for blogs or information sites. That is perhaps surprising, since some saw .xyz as an alternative to .info for such sites.
  15. I did not see any that are local-based traditional businesses.
There are 1982 .xyz sites currently in the Alexa 1M according to data at DomainNameStats If we look at traffic based on queries routed on the global Cisco Umbrella network, the web use of the .xyz extension moved from 29th to 15th place over the past year, and had highest use among new extensions in 2021.

Discussion At NamePros

Since 2015 there has been an active .xyz discussion thread at NamePros. Members showcase recent acquisitions, report sales, and share information on developed websites.

Top XYZ Sales of All Time

Here is a link to the complete NameBio list of .xyz sales for all time. The top of the list is dominated by registry sales of 1 and 2 character names. In first place, 1.xyz sold for $181,720 in 2016. That domain name is currently not in active use.

What Does It All Mean?

Clearly the landscape for .xyz investment is much more positive than it was a few years ago. Probably much of that has been driven by @DNGear, who amassed a large high-quality .xyz portfolio, held out for good prices, had the patience to renew quality names, and has dominated the recent retail sales in the extension.

While no one can predict the future with certainty, aftermarket sales, registrations, and web use trends are all positive for the extension. It was surprising how dominated the major sales were in a relatively small number of sectors, such as investment, collaboration, NFTs, blockchain, cryptocurrency and digital marketing. It will be interesting to see if broader application unfolds, in the way the .io market gradually broadened.

From the analysis that I did, these are the takeaways I developed for those seeking to build their .xyz portfolio. As always, do your own research and make your own conclusions.
  1. Invest mainly, or exclusively, in single word names.
  2. Consider the hot sectors noted above, but also keep in mind that many of those businesses operate on a common word that is only loosely associated with the business description.
  3. Do not be afraid of less common, or more technical, terms if there is a clear association with applications.
  4. It seems wise to generally restrict your consideration to words about 10 characters or less in length.
  5. Retail pricing in low to mid $$$$ seems right for many names in the extension, with highest quality names extending into $$$$$. Keep an eye on recent and comparable sales, as the market is changing.
  6. Look for terms already locked-up in extensions like .com, .net, .org, .io and .co. Many of the firms acquiring a premium .xyz seemed set on a brand story based on a certain word.
  7. Names commanding the strongest prices were taken in 140 or more TLDs, although there were sales with far lower numbers too.
The registry promotes .xyz for ‘generations X, Y and Z’, although it also notes that it is suitable for any sector, location or type of use. The extension got a boost in August 2015 when Google co-founder Larry Page announced that abc.xyz would be used for investor relations for the parent company Alphabet. It continues to be used for that purpose.

With so many registrations, it is hard to find many quality words available for hand registration. Tools like One Word Domains do cover the extension, but you will need a subscription. ExpiredDomains.net can help you find available names at the main auction and aftermarket places. I see that increasingly there are NamePros members seeking .xyz names in the Buyer Request section of NamePros.

So what do you think about the .xyz extension? Have you had personal success with it? Do you think the current momentum will continue? Please vote in the associated poll, and share your comments in the discussion.


Thanks to NameBio for much of the the data used in this analysis. Also shout-out to @DNGear for her success in the extension, and showing the way forward in securing good retail prices. Congratulations to @syedmairaj for the highest value sale in the extension in recent years.
 
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The views expressed on this page by users and staff are their own, not those of NamePros.

The Durfer

Wesley SweatmanTop Member
Impact
16,661
Great article Mr. Bob, ty. :) i think dot xyz has opportunity, i think it falls under dot co and dot io in registrations and sells. Its what someone in a startup wants, its one of the cheap gtlds and will always be a great alternative to dot com. ty.
 
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The Durfer

Wesley SweatmanTop Member
Impact
16,661
on the other hand, they shouldnt raise the price on regging this gtld also, i think it will drop considerably if they do.
 
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lock

FREE.MARKETINGTop Member
Impact
7,341
Getting out of hand like io which i also have none of.
 
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CraigD

Top Member
Impact
11,629
Google co-founder Larry Page announced that abc.xyz would be used for investor relations for the parent company Alphabet.

Well, that name made me sit up and take notice. I had no idea that the Page Rank king had weighed in on this extension.
 
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Impact
34,334
As the article was getting so long, I did not include everything I researched. I did look at the registrar distribution the extension, which is pretty diverse, with more than 200 registrars having significant holdings. It is not surprising that Namecheap have the most, about 735,000. NameSilo also have a large number of domains under management in the extension, about 445,000, more than GoDaddy at just shy of 400,000. Dynadot have about 117,000, and Epik just over 34,000. Considering relatively new, Sav have just shy of 80,000 .xyz under management. Here is the distribution of the top registrars courtesy of nTLDStats.
XYZRegistrarSplit.png

Both registration first year costs and renewal/transfer are pretty competitive in .xyz across many registrars. Occasionally lately you can get a deal on 2 year registrations, good for names you feel confident are investment grade. A number of registrars offer renewals in $8.50 to $10.00 range (see list at TLD-list).
Bob
 
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Henry Y

Established Member
Impact
1,625
Great article and analysis! Thank you Bob!
 
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Paltzar

Senior Web DeveloperTop Member
Impact
602
thanks Bob Great article
 
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Jurgen Wolf

standforUkraine.comTop Member
Impact
11,827
When TLD is so often on GoDaddy main page - I'm not surprised in its sales...
 
4
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Alop

Top Member
Impact
1,539
I vote all my names are xyz
 
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SlackJawedYokel

Established Member
Porkbun.com
Impact
104
I don't usually comment on posts that I'm not tagged on but I couldn't help myself on this one, this is a great writeup and analysis. I stumbled across it searching for other xyz aftermarket related articles during a discussion with some co-workers about the subject. Good stuff!
 
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mzakaib

Upgraded Member
Impact
308
SOLD!xyz. … one that I’m proud to have currency.
 
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SuperDudePro

Established Member
Impact
1,876
Thanks for the write-up. You are consistently providing great material to the forum!

Right now, .xyz is also the only traditional extension that can be added to the ethereum chain via ethereum name service (https://app.ens.domains/).

So, instead of using the long hex code for transactions, you can give your .xyz domain once it is set up and it references your (multiple) numbers through the chain. Most major apps use the service, so I see it show up on every app and wallet that I use. I think that at least some of the movement is because of that.

But supposedly, they are in the process of adding other extensions to the service, which may diffuse some of the appeal.
 
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jiy k

Established Member
Impact
368
Comprehensive post on .xyz extension
Thank you.
 
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Josytal

Top Member
Impact
3,227
Sure, the current trend has taken almost everyone unaware, unprepared.
From the comps sales, its's evidently clear that single, dictionary word .XYZ domains are the "hot cakes". At the time of this post, there are 29254 single, dictionary word .XYZ domains still available for registration. Most at reg fee. From the list (alphabetically):
about.xyz
absolutes.xyz
acceptances.xyz
acclimatise.xyz
accorded.xyz
...
etc.

So .XYZ window of opportunities is still open for investors.
 
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Mr. Deleted

Slabaugh.com 800-266-2728Top Member
Impact
1,014
i only have one, amish.xyz to go along with .co but the majority is .coms
 
0
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Impact
34,334
dictionary word .XYZ domains still available for registration. Most at reg fee. From the list (alphabetically):
about.xyz
absolutes.xyz
Although available, at least one on the list is registry premium. The name about.xyz is $1250 (surprised registry did not keep to use themselves). But you are right others seem regular discounted registration, and does show still some availability, especially in plurals of words, or less common words.
Thanks for contribution,
Bob
 
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Josytal

Top Member
Impact
3,227
Although available, at least one on the list is registry premium. The name about.xyz is $1250 (surprised registry did not keep to use themselves). But you are right others seem regular discounted registration, and does show still some availability, especially in plurals of words, or less common words.
Thanks for contribution,
Bob
You are right. That means it has been reserved by the registry, hence tagged with premium price.

Using DNHat's whois bulk search tool, we scanned about 75000 dictionary words and, from the result, roughly half of the lot are registered. 29254 unregistered, of which 95% are at normal reg fees.
 
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jiy k

Established Member
Impact
368
Are Geo names worth registering in this extension?
Thanks.
 
0
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Impact
34,334
Are Geo names worth registering in this extension?
Thanks.
Based on this look at $1000+ sales only Montana.xyz was a clear geo name. That said, often geo are outbound and might sell below the $1000 level. I have registered a few Canadian cities and regions in .xyz, but have not yet had any offers on them, but it is only about 10 names and I only got them listed for sale not long ago. Others may be able to share more extensive experience with geo and xyz. But my impression would be unless you can find a country or popular tourist region available in .xyz, better to leave geo for .com and country code extensions. Thanks for question.
Bob
 
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jiy k

Established Member
Impact
368
But my impression would be unless you can find a country or popular tourist region available in .xyz, better to leave geo for .com and country code extensions.
Yes. Agree with you. Thank you for guidance.
 
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Jami91

Established Member
Impact
7
Thank you for your nice post
 
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syedzaheer

Established Member
Impact
117
Thanks for good Post
 
1
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Have the domain GiftHampers.xyz any good?
 
0
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Impact
69
Top-notch Analysis, thanks Bob
 
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