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The Ethereum Name Service has been making headlines for a while now across the broader crypto market. The platform had announced an airdrop for the ENS token, and in just a few days, the token made major gains and even got listed in Binance.
Ethereum Name Services has been around for a while now, but it has come to the limelight following the ENS gains. The token has gained by over 300% in just two days, and those who received it during the free airdrop are already reaping major gains.
So, what is Ethereum Name Service, and why is it making major gains?
What is Ethereum Name Service
Ethereum Name Service (ENS) is a distributed and open naming system that runs on the Ethereum blockchain. Ethereum Name Service is tasked with converting human-readable names to machine-readable identifiers, including Ethereum addresses and other crypto-based addresses, metadata and content hashes.
The other function of the ENS network is to support “reverse resolution” that allows the association of metadata with Ethereum addresses. Therefore, ENS has almost similar functionalities to the popular Internet Domain Name Service (DNS).
However, ENS is different from DNS in terms of functionalities. ENS is created with a slightly different architecture and comes with unique capabilities and constraints offered by the Ethereum blockchain.
ENS runs on a system of hierarchical names known as domains. The owner of a domain has full control over the subdomains. For example, a high ranking domain such as “.eth” is owned by smart contracts known as registrars. These smart contracts will create rules on the allocation of subdomains. Those who follow the rules may get ownership of running their own domain.
As mentioned earlier, the ENS project runs on the Ethereum mainnet, and it is available on several test networks. The network launched on May 4, 2017, making it one of the oldest projects in the crypto sector. One of the rules of this network is that every domain needs to contain at least 7 characters.
What is the ENS token airdrop?
The ENS token is the native token for the ENS network. The token is one of the ways that this platform seeks to achieve decentralization by giving governance rights to the community.
The ENS token will empower the community because it will give them control over the project’s development, the community treasury and the technical framework. The ENS token officially launched on November 8, and at the time of issuance, it was trading at around $18.
The ENS token airdrop is still open. However, it is not open to everyone. One can only qualify for this airdrop if they owned an ENS domain on or before October 31, 2021. The platform took a snapshot of those who owned domains before the said date, and these people will receive the ENS tokens.
The number that will be distributed is based on several factors, such as the age of the ETH address and the expiry dates. Those with longer registrations will receive more ENS, while those who have set the Reverse Record ENS will receive twice the tokens.
There will be 100 million ENS tokens, and 25% of this supply will be sent to .ETH holders. These holders are estimated to be more than 137,000 accounts. Another 25% of the ENS tokens will be sent to ENS contributors, while the remaining 50% will be reserved for the DAO community treasury.
If you owned a .eth address before the said date, you can claim the ENS tokens by going to the ENS website. After linking your wallet, you can start the claim process. A user can choose a delegate to represent their interests in the ENS community or choose to be their own delegate.
Once a user has checked out of all the processes, they can claim their tokens. The entire process will be on-chain on the Ethereum mainnet. Therefore, those who want to claim their ENS tokens will have to pay the gas fees. However, the airdrop is open until May 4, 2022; hence a user can wait until the said date for a possible reduction in the gas fees.
ENS token makes major gains
As aforementioned, the ENS token has made major gains in such a short time after launch. The token has gained by over 300%. When it was launched, ENS was only trading at $18, but this has grown to the current price of $70, according to data from CoinGecko.
Those who have already claimed their ENS airdropped are already reaping major gains. The token now has a market capitalization of around $1.2 billion, representing the growing number of people receiving the ENS token airdrops.
Twitter users have been celebrating the gains made by this token, especially those who are eligible for the airdrop. One Twitter user going by Tonyhererra has stated that he will be receiving more than 1500 ENS tokens through this airdrop. Going by the current price, this will be worth around $105,000.
One of the reasons that have contributed to the gains made by ENS is the listing of the token on Binance, the leading cryptocurrency exchange platform. Binance listed the token a day ago, and this has coincided with the gains being experienced. Moreover, it has also made the token accessible to other traders who did not qualify for the airdrop but wanted to be part of the gains.
Airdrops are usually an ideal way for crypto investors to receive some free tokens. However, not all investors get lucky with airdrops because some have specifications that need to be met before a user can qualify for the airdrop, and ENS is among these tokens.
Given the strong use case for the Ethereum Name Service Network, there is a high chance that the token will continue gaining despite only launching recently. Moreover, it will give investors a chance of investing in a new token with a strong technological background. With the Binance listing, ENS can find its way to other top exchanges, and the listing effect will kick in, causing even bigger gains.
To purchase this token visit our How to Buy Ethereum Name Service guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.
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