As many as 320,000 in July alone! Why has the number of Ethereum ENS domain name registrations soared?

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As many as 320,000 in July alone! Why has the number of Ethereum ENS domain name registrations soared?
Blockonomics



Author: Jasmine

July is not over yet, with 326,800 domain names ending in “.eth” registered on the Ethereum domain name service platform ENS during the month. According to Dune Analytics data, the number of registrations in July is second only to 365,652 in May this year, while the total number of ENS domain names created has exceeded 1,813,300, and the number of independent addresses participating in the registration has exceeded 500,400.

The total number of ENS domain names created is on the rise, and transaction activity has also recovered from June. Data from NFT data service provider NFTGO shows that the daily sales of ENS domain names are all above $150,000, reaching $3,262,800 on July 3. In June, the highest daily sales of ENS domain names was only $477,200, and the lowest daily sales were only $80,000.

Some analysts believe that one of the reasons for the increase in the number of ENS domain name registrations is the reduction of gas fees on the Ethereum network. On July 25, Glassnode data showed that the average gas fee of Ethereum on the 7th was 25.825 Gwei, a new low in a year. During this period (July 19th to 25th), the daily number of new ENS domain names gradually returned from 4 digits to 5 digits. On July 24th within a week, the new domain name of “.eth” increased the highest 21723.

Tokenmetrics

In addition to the attractiveness of Ethereum gas fee reductions, the hype effect of the secondary market is a potential stimulus. On July 4th this year, the ENS domain name of “000.eth” was sold for 300 ETH; on July 19th, someone bid $1 million for the ENS domain name “amazon.eth” on OpenSea, although it did not use this Price deal. These secondary market news continues to increase the exposure of ENS and stimulate speculation.

Ethereum Gas Fees Decrease, ENS Domain Name Registrations Rise

More than 500,000 Ethereum addresses have participated in the creation of Ethereum’s ENS domain names. These domain names end with “.eth”, and the Ethereum addresses, which are usually composed of 42 random numbers and letters, are created in a human-readable way. On the Ethereum blockchain and stored in the encrypted wallet of registered users in the form of NFTs.

The full name of ENS is The Ethereum Name Service, which is translated into Ethereum Name Service. Because of its similar goals to DNS, people are used to calling ENS the Ethereum domain name.

domain name

ENS domain name registrations surge in July

Entering July, the ENS domain name registration volume ushered in another wave of small climax. Dune Analytics data shows that a total of 326,800 “.eth” domain names have been registered, bringing the total number of ENS domain registrations to 1,813,300. In the secondary market, the market value of the ENS domain name has reached 68.46 million US dollars, and more than 481,000 addresses will list the ENS domain name NFT held in the secondary market.

Some analysts believe that the recent reduction in Ethereum gas fees is one of the reasons for the increase in ENS domain name registrations. On July 25, Glassnode data showed that the average gas fee of Ethereum on the 7th was 25.825 Gwei, a new low in a year. Registering ENS domain names needs to consume Ethereum gas fees, and during the period of gas decline (July 19th to 25th), the daily number of new registrations of ENS domain names does increase.

Dune Analytics data shows that on July 18, there were 6,917 new “.eth” domains, and on the 21st, this number rose to 13,568. On July 24, the number of new domain names reached 21,723, the highest in seven days.

The market value of 68.46 million US dollars is not the highlight of ENS domain name NFT sales. In May this year, this figure reached 82.91 million US dollars, and the sales exceeded 19.38 million US dollars. This is also the market value of the ENS domain name service since its official launch in May 2017. and record sales.

May was also a month of surge in ENS domain name registrations, with Dune Analytics data showing that a total of 365,652 ENS domain names were registered, a higher number than July. The surge in registrations and sales that month was related to an online “flash show” at the time.

At the end of April, a blockchain project was preparing to issue airdrops to ENS users. An ENS domain name club named “10kclub” suddenly started to register a large number of “.eth” domain names consisting of 3 and 4 digits. The move boosted both ENS domain registrations and sales in less than a week.

$1 million ‘amazon.eth’ bid is eye-catching

In fact, every surge in registrations and sales of ENS domain NFTs is related to incentives or secondary market expectations. November 2021 is also the stage when ENS domain names will fly in both volumes, which is related to the ENS announcement of the airdrop of Tokens at that time.

By July, the increase in ENS domain name registrations and sales was definitely not only related to the reduction of Ethereum gas fees, but the secondary market once again brought hype expectations.

On July 4th, the domain name of “000.eth” was sold at a price of 300 ETH, setting the second highest record in the history of ENS domain name transactions, driving the registration of new ENS domain names. On July 4th alone, there were 30,000 ENS domain names. The new address participates in the registration. As of July 4, ENS saw a 496% increase in 7-day transaction volume.

On July 19, another piece of news entered the field of ENS domain name followers.

A bid of 1 million USDC (equivalent to $1 million) was made on OpenSea for the domain name “amazon.eth”, but the bid did not receive a response from the domain owner. In the end, the domain name was not sold at this price either. The last sale of the domain name was 5 months ago, and the price was 33 ETH. Calculated at the time when ETH was around $3,000, the last transaction was close to $100,000, and it is currently worth less than $50,000. There are currently no new listing prices for this domain name.

Coincidentally, July 19 also coincided with the time when Ethereum’s gas fee gradually decreased, and since then, the number of new registrations of ENS has also begun to increase. What’s more interesting is that this ENS domain name associated with the name of an Internet company has also attracted attention in the secondary market, and the ENS domain name related to amazon is almost the most listed.

At present, NFTGO data shows that there are 269 ENS domain names with the word Amazon (Amazon), and the listing price ranges from 0.013 ETH to 100 trillion ETH, while the highest price of the actual transaction related domain name is 0.2 ETH, which is “amazons.eth” ”, equivalent to $416, and the current listing price is 88.8 ETH, which is equivalent to $125,800; another domain name with an American flag image in front of Amazon is the latest transaction, and the transaction price is only 0.2 ETH.

domain name

ENS domain name pending order with the word amazon

There are 166 ENS domain names with Google (Google) in them. The domain name with the highest actual transaction price is “okgoogle.eth”, the transaction price is 0.45 ETH, and the current value is 1400 US dollars; the latest transaction price of “googleweb.eth” is 0.079 ETH , currently valued at $119, but the holder’s current listing price is 1,000 ETH, and there is no transaction.

In addition to Amazon and Google, the names of well-known overseas companies such as Facebook, Twitter, and Apple have been registered as ENS domain names. The Chinese and English names of domestic Internet companies Ali and Tencent are also used for ENS domain name registration. This is the same logic as in the hype market of Internet domain names in the past. The holders of these ENS domain names are betting on a future – when Web2 enterprises enter Web3, they may need a Web3 domain name.

However, judging from the actual transactions of these ENS domain names registered under the enterprise name, Web3 obviously did not attract Web2 enterprises, and the holders of these enterprise ENS domain names are still in rotation among traders. A more practical problem is that ENS is only a service provider for Web3 domain names. There have been many such providers in the market. TNS, WNS… Various “Name Service” platforms are competing on the Web3 domain name track. Who wins and who loses is still undecided.

At present, the Web3 domain name market is still in its early stage, and hype is an obvious sign. The high transaction price is not an adaptation scenario for ordinary people, but this does not prevent ordinary users from wanting to own a Web3 domain name. Gas fees may create an experience window for users.

(The above content is excerpted and reproduced with the authorization of our partner MarsBit, the original link | Source: Honeycomb Tech)

Disclaimer: The article only represents the author’s personal views and opinions, and does not represent the objective point and position of the block. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and blocker will not be responsible for the direct and indirect losses caused by investors’ transactions.

This article has as many as 320,000 in July alone! Why has the number of Ethereum ENS domain name registrations soared? First appeared in Block Guest.

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