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Demand for the Ethereum Name Service is currently standing at record highs. This month, ENS has recorded a notable increase in new registrations, account renewals and revenues because of increased community awareness and low gas fees.
ENS demand hits record highs
Ethereum Name Service is seeing one of its most popular months in terms of new registrations, account renewals, and revenue because of the platform’s high level of decentralization and scalability.
Nick Johnson, the lead developer at the Ethereum Name Service, posted a tweet on Monday talking about the dynamics of the Web3 domain service and how it was performing this month. Johnson also said that the numbers were expected to be significantly higher than in other periods.
May is now an All Time High for every single ENS metric we track – registrations, renewals, revenue (ETH & USD) and income (ETH & USD).
And there's still a week of May left.
— nick.eth (@nicksdjohnson) May 22, 2022
Johnson also added that the number was expected to be even higher by the month’s end. “May is now an All Time High for every single ENS metric we track – registrations, renewals, revenue (ETH & USD) and income (ETH & USD). And there’s still a week of May left,” Johnson said.
Johnson also said that the primary factor causing an increased demand for ENS domains was a platform where people could meet and create a shared community that does not have an “overarching structure” created for them. This has created notable benefits for the domain service.
“ENS has reached a critical mass of awareness and adoption. Most wallets support ENS names, so the usability factor is significant.” The demand for Web3 has grown significantly over the past year. ENS is one of the largest domain service providers in the crypto space.
Ethereum Name Service is an open-source and secure blockchain created in 2017. ENS enables people to allocate a digital identity to their Ethereum wallet. Every name issued through ENS is a non-fungible token (NFT), whose identity ends with a .eth. The name can also be used as an address, a website URL or a cryptographic hash.
The information shared by Johnson also shows that there were 304,928 new ENS registrations, while the renewals stand at 13,260. In May alone, the revenues collected from the service stand at 3,165.85 Ether (ETH). The metrics collected for May alone have surpassed any metrics that ENS has recorded in the previous months.
Johnson pointed to the different factors that could have caused a rise in renewals and new registrations. One of these factors is the low gas fees charged on the platform.
A fast transaction on the Ethereum network costs around 22 GWEI, equivalent to $0.92, according to data from gasprice.io. However, in cases where the activity on the network is high, the gas fees tend to increase, and they can even surpass $50. This can deter people from using the network unless they need to.
“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,” the report added.
A growing interest in ENS domains
ENS domains have become increasingly popular over the past month. The popularity started in April amid interest in social clubs within the ENS ecosystem. One of these clubs is 10k, which was created by the owners of the ENS domains.
ENS’s growth comes after a recession in the market. The ENS decentralized autonomous organization (DAO) is taking funds away from planned developments. Johnson added that the income planned to fund the development could be used to shield the project from market volatility. “With that guarantee against market effects, additional funds can be used more freely to help grow the ecosystem,” the report added.
To learn more visit our How to Buy Ethereum Name Service guide.