A few industries and tech workers are moving from Web2 to Web3, and this is causing awareness about blockchain technology to spread.
One project, the Ethereum Name Service (ENS), is looking to facilitate Web3 adoption. It makes it easier for DApp users and DApp developers to connect with the Ethereum network. This is achieved by creating human-readable Ethereum addresses, which can then be converted into machine-readable alphanumeric code.
Cointelegraph Markets Pro and TradingView data show that ENS prices have risen 91.75% since hitting a low point of $14 on April 26. This was in spite of a record 24-hour trading volume.
ENS/USDT 1-day chart. Source: TradingView
The recent price turnaround in ENS includes three factors: a sudden rise in demand for 3-and 4-digit ENS domains; a record-breaking number of domain registrations for April; and a rise protocol revenue, which has helped to increase funds for the ENS autonomous decentralized organization (DAO).
The demand for domains with 3-4 digits is on the rise
On April 26, the sudden price rise of ENS coincided with a surge of demand for 3- to 4-digit ENS domains. This may have been the catalyst for the NFT (nonfungible token) community.
Daily ENS registrations Source: Dune Analytics
Secondary sales of ENS names on OpenSea topped 446 Ether (ETH), in the last week.
Analysts suggested that NFT investors may be attracted to shorter ENS domains. This is a theory that has yet to be proven.
Record domain registrations in April
According to Dune Analytics data, the sudden spike in domain registrations at April’s end capped off an unprecedented month for the project. 162,978 new domain names were registered.
Monthly domain registrations Source: Dune Analytics
Record-breaking growth in ENS’s month also saw the total registration surpass 1 million for the first time ever.
*One million* ENS names have been created. pic.twitter.com/4EnmqeijzV
— ens.eth, May 1, 2022 (@ensdomains).
As of the writing of this article, there are 48,702 daily mint counts for May 2, and there have been 1,063,982 ENS domains minted so far by 393,894 unique participants.
Related: Future and concept of decentralized Web3 domains
Increased revenue from protocol
The renewed interest in ENS domains led to the second highest monthly revenue of $7,838,962 from renewals and registrations.
Monthly renewal/registration revenue for ENS. Source: Dune Analytics
This amounts to $42,767760 in annual revenue for the protocol. The proceeds are ultimately redirected into the project’s treasury and used by the ENS DAO.
According to ENS registration fees are intended to prevent the namespace becoming overloaded with speculatively-registered names. A secondary function is to generate enough revenue for the ENS DAO to continue developing and improving ENS.
All holders of ENS tokens have the opportunity to vote through the DAO in governance.
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Eileen Wilson –Technology and Energy
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