#HNS HNS (Handshake) is indeed a very promising project, especially in the decentralized domain name field. Its positioning and development path are very different from ENS (Ethereum Name Service). Let's analyze in detail the highlights you mentioned:

The current market capitalization of HNS is indeed small, only a little over $10 million (compared to other projects in the same field). For top-tier investment institutions like David Sacks and a16z, these early-stage projects with low market capitalization may indeed have great growth potential.
• Positioning of HNS:
HNS is a completely independent domain name public chain, and all domain name registration and resolution are completed on its own chain, without relying on Ethereum or other platforms. This Decentralization model makes it more independent and also reduces operating costs and complexity.
• Limitations of ENS:
ENS relies on the Ethereum network, which, although powerful in its ecosystem, is also limited by Ethereum's Money Laundering and scalability issues. The main use case of ENS is currently binding Wallet Address, which has limited practical use compared to HNS's top-level domain name auction and network openness.
• Domain release quantity:
HNS has currently released over 20 million top-level domain names, while ENS has only over 7 million. Moreover, ENS domain names need to run on the ETH blockchain's smart contract, which makes it slightly less scalable compared to HNS's independent blockchain characteristics.
The founding team of HNS has a strong background. As the founder of Lighting Network and a core figure in Decentralization payment, his technical strength and understanding of the blockchain ecosystem are beyond doubt. This technical background also gives the HNS project more credibility and potential for continued development.
HNS adopts a fair auction mechanism to release domain names, which is more friendly to market participants, drops speculation, and attracts people who truly need domain names. Compared to the reservation mode of ENS, the mechanism of HNS allows ordinary users to participate in domain name acquisition more fairly.
The domain market itself is a very valuable track. With the development of Web3, domain services of Decentralization will be increasingly needed, especially in the field of digital identity, Decentralization website hosting, etc.
As the world's only domain name public chain, HNS has great potential for ecological expansion.
• Current market capitalization is undervalued: Currently, the Market Cap of HNS is much lower compared to ENS, but in the long-term development, the potential and technological advantages of HNS may gradually approach or even surpass ENS.
• Domain name demand rise: The demand for decentralized domain names in the future will further explode with the development of Web3 and the metaverse.
• Team and Financial Support: The support from top institutions and founders provides a guarantee for the long-term development of the project.
By auctioning the domain names with the native currency, hns, all the hns obtained are destroyed, achieving the deflationary model of hns.