Record-high surge in Ethereum Name Service domains triggers 90% rally in ENS

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Record-high surge in Ethereum Name Service domains triggers 90% rally in ENS
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A few industries and tech workers are moving from Web2 to Web3, and with this move, awareness of blockchain technology is spreading.

The Ethereum Name Service (ENS) is a project that aims to help promote Web3 adoption by making it easier for DApp users to interact with the Ethereum network. This is achieved by creating a human-readable Ethereum address that can be translated into a normal machine-readable alphanumeric code.

Since hitting a low of $14 on April 26, the price of ENS has surged 91.75% to a daily high of 27.65 on May 2 amid soaring 24-hour trading volume, according to data from Cointelegraph Markets Pro and TradingView. Dollar.

ENS/USDT 1-day chart. Source: TradingView

Three reasons for the recent price recovery of ENS include: sudden increase in demand for 3- and 4-digit ENS domains, record number of domain name registrations in April, and increased protocol revenue helping to increase the amount of decentralized autonomy available for ENS Organization (DAO).

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Demand for 3- to 4-digit domain names skyrockets

The sudden increase in the price of ENS began on April 26, a move that coincided with a surge in demand for 3- and 4-digit ENS domains that could be a focal point for the non-fungible token (NFT) community.

Daily ENS registration.Source: Dune Analysis

Secondary sales of ENS domains on OpenSea peaked at 446 ether (ETH) last week with new registrations.

Some analysts believe that the demand for shorter ENS domains may be related to NFT investors who prefer shorter tags, which reflect the token IDs of their NFTs — but at the moment, this is an unproven theory.

Record domain registrations for April

The sudden surge in registrations at the end of April ended a record month for the project, which saw 162,978 new domain registrations, according to Dune Analytics.

Monthly domain registration.Source: Dune Analysis

ENS’ record one-month growth also helped total registrations cross the 1 million mark for the first time in history.

At the time of writing, the daily minting count on May 2 was 48,702, and a total of 393,894 unique participants have minted 1,063,982 ENS domains since the project launched.

Related: The Concept and Future of Decentralized Web3 Domains

Increase agreement revenue

Registrations and renewals of the agreement generated the second highest monthly revenue at $7,838,962 due to renewed interest in ENS domains.

Monthly signup/renewal revenue for ENS.Source: Dune Analysis

This brings the protocol’s total annual revenue to $42,767,760, which is eventually redirected back to the project’s treasury for use by the ENS DAO.

According to ENS, the main purpose of the registration fee is to “prevent namespaces from being flooded with speculatively registered names.” The second function of the fee is to provide the ENS DAO with sufficient revenue to fund the continued development and improvement of ENS.

All ENS token holders have the option to participate in governance voting through the DAO.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.





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