The Ethereum Name Service is having its best month on record for new registrations, account renewals, and revenue thanks to community awareness and low gas rates.
Ethereum Name Service (ENS) Lead Developer Nick Johnson tweeted Web3 domain service metrics through May on Monday. He noted that the figures were about to break existing records, because they were already at all-time highs, “and there’s still a week left in May.”
May is now an All Time High for every single ENS metric we track – registrations, renewals, revenue (ETH & USD) and income (ETH & USD).
And there’s still a week of May left.
— nick.eth (@nicksdjohnson) May 22, 2022
May is now an all-time high for each of the ENS metrics we track: registrations, renewals, revenue (ETH and USD), and revenue (ETH and USD). And there’s still a week left in May.
Johnson told Cointelegraph on Monday that the main factor contributing to increased demand for ENS domains is that it is a place where people can “form shared communities without any general structure imposed beforehand.” This has had amazing results for the domain service:
“ENS has reached a critical mass of awareness and adoption. Most wallets support ENS names, so the usability factor is significant.”
ENS is an open source blockchain protocol founded in 2017 that allows people to assign a digital identity to their Ethereum wallet. Each name is a non-fungible token (NFT) that ends in .eth and can act as an address, a cryptographic hash, or a website URL.
The data shared by Johnson shows that there have been 304,968 new registrations, 13,260 renewals, and 3,165.85 Ether (ETH) in revenue so far in May. All of these metrics leave behind previous highs.
Johnson also said “lower gas rates definitely have an impact” on higher onboarding and renewal rates. Sending a quick transaction on Ethereum costs about 22 GWEI, which is worth about $0.92 at the time of writing., according to gasprice.io. In periods of high volume, gas fees can be higher than USD 50, which can act as a deterrent to the use of the network except in cases of emergency:
“You can register an ENS name of more than 5 characters for a year for USD 5. High gas rates can make the cost several times higher, so gas prices have a great impact on the affordability of gas. ENS names.”
Interest in ENS domains has increased rapidly since April, when social clubs like the 10k Club within ENS gained widespread attention.. The 10k Club was formed by owners of ENS domains numbered between 0-9999. Both new registrations and renewals have almost doubled since then.
ENS’s record revenue, coupled with the market downturn, has prompted ENS’s decentralized autonomous organization (DAO) to plan to accumulate funds for ongoing development. Johnson stated that the proceeds to fund development and maintenance “indefinitely” will help the project weather market volatility:
“With that guarantee against market effects, the additional funds can be used more freely to help grow the ecosystem.”
Nevertheless, bullish metrics have not been reflected in ENS prices. The token has been in a steady decline since its launch in November 2021, with all .eth domain holders receiving a share of the offering. ENS is down 86% from its November all-time high to $12.21, according to CoinGecko.
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