- .com is no longer the highest-priced TLD in terms of average value
- .ai is at an all-time high average value of $535,000, a 260% surge in three months
- .com domains still lead in terms of volume at $86 million, compared to .ai at $37.7 million
.com has long been established as the gold standard top-level domain (TLD). From Amazon and eBay to Google and Facebook, practically every online behemoth has been built on .com.
But with so much new technology flooding the market, could this all be about to change?
New research has claimed .com has lost its standing as the highest-priced web address in terms of average value – beaten by .ai.
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The .ai boom
The report by Escrow.com found a record-high average value of .com domains of $529k, beating its previous cycle peak in 2021. Yet, despite its huge value, .ai still beat it, with an all-time high average value of $535k, marking a 260% surge in just three months.
This data reinforces a clear trend, with AI continuing to spread from the stock market into the TLD space and beyond.
The report also highlights a 270% increase in the volume of .ai domains, growing from $10.0 million to $37.7 million during the period. However, .com remains considerably higher by volume at an impressive $86 million.
“This quarter’s .ai growth alone beat the combined gain of every other country-code extension. A year ago we didn’t know if .ai would actually challenge .com or just fizzle out like the rest. Now we’ve got an answer. Buyers are paying more, on average, for a good .ai name than a good .com one,” shared Matt Barrie, Chief Executive of Escrow.com.
With many AI-focused businesses entering the market, there is little surprise that there is growing demand for the .ai TLD. Startups and small businesses using it gain an immediately recognizable sign of who they are and what they do.
The risks of .ai
Picking a .ai domain isn’t without its risks – using .ai can make it hard to pivot. For example, if a startup launches its brand on a .ai domain, only to later pivot away from AI, the equivalent .com domain may not be available or may be incredibly expensive.
Brands also need to factor in that .ai isn’t a generic domain like .com, but is an official country-code top-level domain (ccTLD) for Anguilla, a British Overseas Territory in the Caribbean.
According to some reports, .ai domain registrations have transformed Anguilla’s economy, which has primarily relied on tourism in the past. However, this reliance on a single local government can create uncertainty for .ai users, subjecting them to potential regulatory changes, geopolitical instability, and political shifts.
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