Due to community awareness and low gas fees, the Ethereum Name Service (ENS) is having its best month ever in terms of new registrations, account renewals, and revenue according to recent metrics.
Nick Johnson, the lead developer at Ethereum Name Service (ENS), tweeted on May 23 the numbers for the Web3 domain service thus far in May. “And there’s still a week of May remaining,” he said, noting that figures were on track to break previous records because they were already at all-time highs.
The key reason for the increased demand for ENS domains, according to Jonson, is that it is a location where users can “create shared communities without any overarching structure placed on them beforehand.” The domain service has seen incredible benefits 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 system that allows users to give their Ethereum (ETH) wallet a digital identity. Each name is a nonfungible token (NFT) with a.eth extension that can be used as an address, a cryptographic hash, or a website URL.
According to Johnson’s data, 304,968 new registrations, 13,260 renewals, and 3,165.85 ETH in income have been recorded so far in May. All of these figures outperform previous highs.
Low gas expenses, according to Johnson, “certainly 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 rates can reach $50 during moments of heavy volume, which may discourage people from using 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.”#
Interest in ENS domain increases
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 decentralized autonomous organization (DAO) is planning to set aside assets for future development. The income set aside for development and maintenance “indefinitely” would let the project weather further market instability, according to Johnson.
“With that guarantee against market effects, additional funds can be used more freely to help grow the ecosystem.”
However, ENS prices have not reflected the optimistic metrics. Since its November 2021 debut, when all.eth domain holders were airdropped a portion of the supply, the token has been steadily declining. According to CoinGecko, ENS has dropped 86 percent from its all-time high in November to $12.21.