Identity Digital has published research showing rising investor interest in web domains, with millennials making up the largest share of surveyed investors.
Among respondents, 66% were aged 30 to 44, and 49% worked in technology or related fields. Another 66% held full-time or part-time jobs outside the investing domain, suggesting the market is largely made up of part-time participants.
The findings position domains as an alternative asset class, attracting investors building portfolios around online trends. The typical approach appears to be long term rather than high-volume trading.
The data showed a median portfolio size of about 100 domains. Two-thirds of respondents said they buy fewer than 100 domains a year, 82% sell fewer than 50 annually, and 74% hold domains for at least a year.
Tech themes
Investor sentiment was strongest around domain extensions linked to technology themes. In the survey, .ai recorded a 69% net positive sentiment score, while .io recorded 64%.
Identity Digital linked that pattern to interest in artificial intelligence and other digital sectors that investors believe could shape future demand for online identities. The data suggests domain investors are closely tracking changes in web behaviour and which labels may gain commercial relevance.
"The modern internet is offering new ways for domain investors to track consumer behavior and potential opportunities," said Matt Overman, Chief Revenue Officer at Identity Digital.
"Next-generation domain extensions are starting to attract investor attention, as creators, brands, and AI continue to reshape the web and elevate the importance of identity, trust, and authenticity," Overman said.
Market signals
Investors use domain sales data, top-level domain performance trends, and portfolio-tracking tools to guide their decisions. That points to demand for better market information in a segment often viewed as niche and opaque.
The research also examined the factors that influence investors when choosing where to register and manage domains. Low renewal fees, ease of portfolio management, and access to support teams ranked as the most important factors.
Registry marketing also appeared to affect investment decisions. Among respondents, 67% said registry operators directly influence their choices, while 69% said they are more likely to invest in a top-level domain when they see active marketing from a registry.
Those figures indicate that domain investment is shaped not only by secondary-market sales and perceived scarcity, but also by how extensions are presented and maintained by the organisations that run them. That gives registries and registrars a visible role in steering attention across the market.
Alternative assets
Identity Digital framed the findings against the broader appetite among younger investors for alternative assets. It cited external market data showing alternatives can account for as much as 20% of millennial portfolios, a larger share than among older generations.
That helps explain why domains may appeal to investors comfortable with digital assets but looking beyond more volatile parts of the market. Unlike fast-moving speculative instruments, the survey suggests many domain buyers are taking a slower approach, holding names they believe may become more valuable over time.
Brett Berhoff, a domain strategist and investor, described the appeal more directly. "As an asset class, premium domains combine scarcity, strategic relevance, and long-term utility," Berhoff said.
The study was based on qualitative interviews with domain industry experts and a quantitative survey of more than 100 domain investors. Identity Digital said it manages more than 28 million domains across its registry services and also operates the registrar Name.com.