The Web3 domains industry is experiencing a significant shift toward professional and commercial applications in 2026, moving beyond speculative trading. Over 3.3 million new blockchain domain names were registered in 2025, with companies like Unstoppable Domains and ENS (.eth) leading the market. ENS currently holds about 85% of the market share on Ethereum, with over 1.6 million names registered. These domains function as NFTs, giving users total control and serving as universal usernames across the digital ecosystem for easy payments, censorship-resistant websites, and portable digital identity across apps, games, and metaverses. The market for decentralized digital identity is expected to grow from roughly $6.9 billion today to over $100 billion by 2035. However, critics note that many blockchain domains aren't yet used to host real websites, and naming collisions between different platforms remain a challenge as the technology matures.