Ethereum Name Service (ENS) Continues To Grow Strongly Despite The Entire Crypto Market Going Down
Because to its rising popularity and cheap gas fees, the Ethereum Name Service (ENS) is experiencing its best month ever in terms of new registrations, account renewals, and income.
According to lead developer at ENS Nick Johnson, the key reason for the increased demand for ENS domains is that it is a place where users may “form shared communities without any overarching structure imposed on them beforehand.” The domain service has seen incredible outcomes as a result of this: “ENS has reached a critical mass of awareness and adoption. Most wallets support ENS names, so the usability factor is significant.”
ENS is a 2017 open-source blockchain protocol that allows users to give their Ethereum wallet a digital identity. Each name is a .eth NFT that may be used as an address, cryptographic hash, or website URL.
According to Johnson’s data, 304,968 new registrations, 13,260 renewals, and $3,165.85 in income have been recorded thus far in May. All of these figures outperform prior highs.
Low gas fees, according to Johnson, “definitely have an impact” on greater onboarding and renewal rates. According to gasprice.io, sending a quick transaction on Ethereum costs roughly 22 GWEI, or $0.92 at the time of writing. Gas fees can reach $50 during peak seasons, which may discourage people from utilizing the network unless it’s an emergency:
“You can register a 5+ character ENS name for a year for $5. High gas fees can make the cost several times that, so gas prices have a big impact on the affordability of ENS names.”
Since April, when social groups like the ENS 10k Club attracted a lot of attention, interest in ENS domains has been rapidly increasing. Owners of ENS domains with numbers ranging from 0-9999 founded the 10k Club. Since then, both new registrations and renewals have roughly doubled.
Due to ENS’s record high revenues and a market slump, the ENS DAO has decided to set aside assets for future development. The income set aside for development and maintenance indefinitely would let the project weather more market instability, according to Johnson:
“With that guarantee against market effects, additional funds can be used more freely to help grow the ecosystem.”
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