The Ethereum Name Service has reached a ‘critical mass of interest


New listings and renewals of existing domains on ENS reveal that interest in the digital identification service has broken prior records.

This is the strongest month ever for new registrations and account renewals for the Ethereum Name Service, owing to increased community awareness and lower gas costs.

Web3 domain service stats for the month of May were shared by Ethereum Name Service (ENS) lead developer Nick Johnson via Twitter on Monday. “And there’s still a week of May remaining,” he said, noting that figures were on the verge of breaking previous records since they were already at record highs.

In an interview with Cointelegraph on Monday, Jonson said that demand for ENS domains is driven by the fact that users may “create shared communities without any overarching structure put on them beforehand.” The domain service has seen some incredible outcomes as a consequence of this:

“There is now a critical mass of people who are aware of and using ENS. In terms of usability, ENS names are widely supported by most wallets.”

People may now give their Ethereum wallets a digital identity using ENS, an open-source blockchain platform that was created in 2017. .eth is a non-fungible token (NFT) that may be used as an address, a cryptographic hash, or a website URL, and each name is unique.

There have been 304,968 new registrations, 13,260 renewals, and 3,165.85 Ether (ETH) in income so far this month, according to the figures provided by Johnson. All of these indicators have surpassed historical highs.

The greater rates of onboarding and renewal are attributed, according to Johnson, in part, to “cheap gas expenses.” estimates that it costs 22 GWEI, or about $0.92, to make a fast transaction on Ethereum. When the network is overburdened, petrol prices may rise to more than $50 per gallon, making it difficult for users to use it unless in dire circumstances:

An ENS name with five or more characters may be registered for five dollars for the duration of a year. As a result, high gas costs have a significant influence on the affordability of ENS brands,” he says.

Since April, when social groups like the ENS 10k Club attracted a lot of attention, interest in ENS domains has swiftly increased. Owners of ENS domains numbered between 0 and 9999 are members of the 10k Club. Since then, the number of new registrations and renewals has almost doubled.

The ENS decentralised autonomous organisation (DAO) wants to save money for future growth because of ENS’s record income and the current market slump. As Johnson put it, “for the foreseeable future,” the money set aside for development and upkeep will allow the enterprise to withstand more market instability.”

This protection against market impacts allows for more money to be put to good use in expanding the ecosystem.

But ENS prices have not reflected the positive metrics. Since its November 2021 debut, when a part of the supply was airdropped to all.eth domain proprietors, the token’s value has been steadily declining. ENS has plunged 86 percent from its November all-time high to $12.21, according to CoinGecko.

Also Read: “Cryptocurrency Is “Worthless,” European Central Bank President Indicates

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