A handful of industries and tech workers are switching from Web2 to Web3 and with this move, awareness of blockchain technology is also spreading.
Ethereum Name Service (ENS) is a project that seeks to help facilitate Web3 adoption by making it easier for Dapp users to interact with the Ethereum network. This is achieved by creating human-readable Ethereum addresses that can be converted into normal, machine-readable alphanumeric codes.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $14 on April 26, the ENS price has risen 91.75% to a daily high of $27.65 on May 2 amid heavy trading volume. in 24 hours.
Three reasons for the recent ENS price change include the sudden increase in demand for ENS 3- and 4-digit domains, a new record number of domain registrations in April, and an increase in revenue from the protocol that has helped increase the funds available to the decentralized autonomous organization (DAO), ENS.
The demand for 3 to 4 digit domains skyrockets
The ENS price surge began on April 26 and this move coincided with a surge in demand for 3- and 4-digit ENS domain names that arguably became the focus of the non-fungible token community ( NFT).
Along with the new registrations, the secondary sales of ENS names on OpenSea reached a maximum volume of 446 Ether in the last week.
Some analysts suggested that the demand for shorter ENS domains could be related to NFT investors preferring the shorter label that reflects their NFT’s token ID, but for now this is an unproven theory.
Record number of domain registrations in April
The surge in registrations at the end of April capped a record month for the project that saw 162,978 new domain registrations according to data from Dune Analytics.
The record month of growth for ENS also helped push total registration past the 1 million mark for the first time in history.
*One Million* ENS names have now been created! pic.twitter.com/4EnmqeijzV
— ens.eth (@ensdomains) May 1, 2022
At the time of writing this article, the daily mint count for May 2 is 48,702 and there have been a total of 1,063,982 ENS domains minted by 393,894 unique participants since the project was launched.
Increased Protocol Revenue
As a result of renewed interest in ENS domains, the protocol posted its second highest monthly revenue with $7,838,962 generated from registrations and renewals.
This makes a total annual revenue of $42,767,760 for the protocol, which is ultimately redirected back to the project treasury to be used by the ENS DAO.
According to ENS, the primary purpose of registration fees is “to prevent the namespace from being overwhelmed by speculatively registered names.” A secondary function of fees is to provide enough revenue to the ENS DAO to fund the continued development and improvement of ENS.
All ENS token holders have the option to participate in governance votes through the DAO.
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