Because of community awareness and low gas fees, the Ethereum Name Service is having its best month ever in terms of new registrations, account renewals, and revenue.
The latest ENS analytics on new domain registrations and renewals reveal that demand in the digital identification service has surpassed prior highs.
Breaking Previous Records
Nick Johnson is the lead developer at Ethereum Name Service (ENS). He tweeted the data for the Web3 domain service so far in May on May 23. He pointed out that figures were on track to break previous records because they were already at all-time highs, and May is still a week away.
The key reason for the increased interest in ENS domains, according to Jonson, is that it is a location where people can build shared communities. This is without the imposition of any overarching organization. The domain service has seen incredible benefits as a result of this.
The acceptance and awareness of ENS has reached a critical mass. The usability function is vital because most wallets support ENS names.
ENS is a 2017 open-source blockchain system that allows users to give their Ethereum (ETH) wallet a digital identity. Each name is a Non-fungible Token (NFT) with a .eth suffix. It can use as a website URL, a cryptographic hash, or an address.
According to Johnson’s data, 304,968 new registrations, 13,260 renewals, and 3,165.85 ETH in income have recorded so far in May. All of these figures outperform previous highs.
Low Gas Fees’ Impact
Low gas prices, according to Johnson, have a significant impact on greater onboarding and renewal rates. As of this writing, it costs about 22 GWEI to send a fast transaction on Ethereum. According to gasprice.io, it is worth $0.92. Gas surcharges can exceed $50 during periods of heavy volume. It could be a deterrent to utilizing the network until absolutely necessary.
For $5, users can register a five-character ENS name for a year. High petrol prices might increase the cost by several times. Finally, gas costs have a significant impact on the cost of ENS names.
Since April, there has been a rapid increase in interest in ENS domains. This was the time when social groups like ENS’s 10k Club drew a lot of attention. Owners of ENS domains with numbers ranging from 0-9999 founded the 10k Club. Since then, both new registrations and renewals have roughly doubled.
Sparkled Plans in ENS DAO
The ENS decentralized autonomous organization (DAO) has made preparations in response to record high profits and a market slump. This is done to save money for future development.
According to Johnson, the funds will use to fund development and maintenance. This will be in place indefinitely, which will aid the project in weathering any market volatility. Additional monies can spend more freely to assist build the ecosystem with that guarantee against market consequences.
However, ENS prices have not reflected the optimistic metrics. Since its introduction in November 2021, the coin has been steadily declining. A portion of the material airdropped to all.eth domain holders. According to CoinGecko, ENS has dropped 86 percent from its all-time high in November to $12.21.
