Historical Valuation Analysis of 3-letter .Com Domain Names

Valuation of 3-letter .com domain names are quite speculative. Like the fluctuations in stock market, valuations of 3-letter .com domains change in time with increases and decreases in their values.

3character.com provides some historical data on the values of LLL.com domains. I took the data provided in there and created the diagram below showing the fluctuations in the values of 3-letter .com domain names from January 2006 to May 2014.

Y-Axis displays the minimum sale price for a 3-letter .com domain name and X-Axis displays the date of the sale.

3-letter .Com Minimum Sale Prices From 2006 to 2014
3-letter .Com Minimum Sale Prices From 2006 to 2014

As you can see in the graph, 3-Letter .com domain names’ minimum  sale prices increased from January 2006 to July 2008. After a steep decrease it seems that 3-letter .COM domain names’ values are increasing again.

What is the driving force behind this? What makes the 3-letter .com domain name prices go up & down?

Couple of reasons come to mind.

Could it be echonomical reasons. Could it be that people tend to invest in domain names when the echonomy is good, kind of like buying stocks? I have not performed an echonomical analysis for the same period, so I am just thinking loud.

Could it be the doing of some trend setters (speculators) making people believe the prices will go up or down manipulating the domain name market? Why not? They do exist in stock markets.

May be it is just a single sale that sets the course of the 3-letter .com sales coming after it, creating some kind of a domino effect.

There could be many reasons behind the price fluctuations but if you look at the graph above from the technical analysis perspective, it seems like the prices will keep going up. What do you think?


Hope this helps.
Good Luck,

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