The craze for short domain names has always been there and now, the crazes for shorter TLDs has entered the domain business as GoDaddy is showing .co as the default choice for domain search and registration.
With good .com domains running out fast, now people can opt for their desired domains on the CO TLD. COM has been the de-facto in domain names for over 26 years now and no matter how many TLDs like NET, ORG etc. come up, it will still be called the .com bubble.
However, GoDaddy being the biggest domain registrar is trying to be a trendsetter by using CO. This is proving advantageous for GoDaddy in two ways. Firstly, GoDaddy registers more than 50% of all web domains. That gives it a high probability of attracting customers to CO domains. Secondly, CO domains cost three times as much as COM. That will prove as an inherent benefit for selling CO domains.
Many websites have already started making a switch to CO from the initial COM. These further increases the customer base for GoDaddy and it is surely thinking business. As for myself, I see no reason to jump into the .co domain hype. right now. There are many good .com domains that have not been claimed yet and .com will work for at least a year more before .co sees some considerable acceptance.