Agree - the market overprices some names because the demand is high, the liquidity is high too, and risk is reduced. These names also have a historical record of appreciation so many will overpay today to secure a name which will probably be far more expensive in years to come.

Higher quality names offer better liquidity and higher sale prices, but the market is more efficient in pricing them - so margins are tighter and returns are lower. Cheaper domains (such as hand-registrations, unexplored niches and alternate extensions) will give you less stability and more risk, but there are bigger margins and greater inefficiencies in valuations. I found it easier to start my investing journey with a focus towards the latter, as I had less money at the beginning and could compound faster. But I quickly realised that I didn't want to pursue scale ... so I've been slowly moving capital (over the years) towards fewer, better names. There's no single perfect way to play this game - every choice, every strategy, every domain - each has its own upsides and downsides. You've just got to find what works for you.