Interest in Ethereum Name Service reaches ‘Critical Mass’

Interest in Ethereum Name Service reaches ‘Critical Mass’

Due to community awareness and low gas tariffs, Ethereum Name Service is by far the best month for new registrations, account renewals and revenue.

Ethereum Name Services (ENS) lead developer Nick Johnson Tweeted Metrics from May to date for the Web3 domain service on Monday. He noted that the numbers are on track to reach an all-time high, as they are already at an all-time high, “and there is still one week left in May.”

May is now the all-time high for every ENS metric we track – Registration, Renewal, Revenue (ETH and USD) and Revenue (ETH and USD).

And May has one more week left.

– nick.eth (icksnicksdjohnson)

Johnson told Cointelegraph on Monday that the key factor contributing to the large demand in the ENS domain is where people can “create shared communities without any broad framework already imposed on them.” The amazing results for the domain service are:

“ENS has reached a critical juncture of awareness and adoption. Most wallets support ENS names, so the utility factor is important.

ENS is an open source blockchain protocol established in 2017 that allows people to assign digital identities to their Ethereum wallet. Each name is a non-fungible token (NFT) ending in .eth and can serve as an address, crypto hash or website URL.

Data shared by Johnson shows that 304,968 new registrations, 13,260 renewals and 3,165.85 ether (ETH) revenue have been received so far in May. All these metrics leave the previous highs in the dust.

“Low gas rates definitely affect higher integration and renewal rates,” Johnson said. According to gasprice.io, the cost of sending a quick transaction on Ethereum is about 22 GWEI, which is about $ 0.92 at the time of writing. During high-volume periods, the gas fee can be above US 50 USD, which can prevent the use of the grid in case of emergency:

“You can register ENS names larger than 5 characters for one year at $ 5. High gas charges can increase the price many times over, so gas prices have a big impact on the accessibility of ENS names.”

Interest in the ENS domain has grown exponentially since April, when social clubs like the 10k Club in the ENS attracted a lot of attention. The 10k club was founded by owners of ENS domains numbered between 0-9999. Both new registrations and renewals have almost doubled since then.

The record revenues from ENS, along with the market downturn, led to plans to divert funds to sustainable development in the ENS’s decentralized autonomous body (DAO). Johnson said the expected revenue project for development and maintenance funding “for an uncertain future” would help weather market volatility:

“With this guarantee against market results, additional funds can be used more freely to support the growth of the ecosystem.”

However, bullish metrics did not appear in ENS prices. Tokens have been steadily declining since its launch in November 2021, with all .eth domain holders having a supply share. According to CoinGecko, ENS is down 86% from its all-time high of वर 12.21 in November.

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