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According to newly released data from Escrow.com, the domain-name market posted its strongest quarter in three years, with transaction volume rising 25% quarter-on-quarter to $128 million in the first quarter of 2026. The report suggests investors are increasingly treating domain names as digital real estate rather than focusing on established websites.
The standout performer was .com, which reached a record $89 million in transaction volume, up 27% from the previous quarter. Premium dictionary-word domains commanded particularly high prices, with the average sale price of an exact-match English-word .com domain surging 40% to $402,000, one of the strongest readings since the market peak of 2021.
.ai consolidation: Meanwhile, the previously fast-growing .ai domain segment paused after a prolonged rally. Transaction volume slipped 3% to $10 million, though it remained the second-highest quarter on record and roughly three times higher than a year earlier.
Investor shift: One of the report’s most notable findings was a shift in investor behaviour. For the first time on record, domains without active websites achieved a higher median price than domains with content, at $5,369 versus $4,000. Domains without content accounted for 94% of total dollar volume, indicating strong demand for undeveloped digital assets.
The report also highlighted strength in several short-domain categories. Median prices for three-letter .com domains more than doubled to $99,000, while two-character .com domains climbed sharply to $550,000.
Outlook: The findings point to a market increasingly focused on acquiring scarce online identifiers, with investors concentrating on premium domain inventory as a long-term asset class rather than buying fully developed web properties.
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