Interest in Ethereum Name Service reaches “critical dimension”

Interest in Ethereum Name Service reaches "critical dimension"

Ethereum Name Service has the best month in terms of new registration, account renewal, and revenue, thanks to community outreach and low gas fees.

On May 23, Nick Johnson, lead developer of the Ethereum Name Service (ENS), tweeted Web3 domain service figures for May to date. He noted that the numbers were close to breaking existing records because they were already at an all-time high, “and there is still a week of May left.”

May is now at an all – time high for all ENS metrics we run – enrollments, renewals, revenue (ETH and USD), and revenue (ETH and USD). And the week of May is still left.
– nick.eth (@nicksdjohnson) May 22, 2022

Jonson told Cointelegraph on Monday that the main factor contributing to the higher demand for ENS domains is that it is a place where people can “create shared communities without any overarching structure at the time.” This has had great results for the domain service.

“ENS has achieved a crucial element of awareness and acceptance; most wallets support ENS names, so the usability factor is significant.”

ENS is an open source blockchain protocol established in 2017 that allows people to assign digital identity to their Ethereum wallet (ETH). Each name ending in .eth is an unambiguous token (NFT) and can act as an address, crypto hash, or website URL.

Data shared by Johnson show there have been 304,968 new registrations, 13,260 renewals, and 3,165.85 ETH in revenue to date in May. All these measures leave a highlight in the previous dust.

Johnson also said that “lower gas charges certainly have an impact” on higher boarding and renewal rates. A fast transaction launch on Ethereum costs about 22 GWEI at the time of writing this report, or about $ 0.92 according to In times of high volume, gas charges can exceed $ 50, which can only discourage network usage in an emergency.

“You can register an ENS name longer than 5 characters for a year for $ 5 – high gas charges can further multiply the cost, so gas prices have a huge impact on the accessibility of ENS names.”

Interest in ENS pitches has grown rapidly since April, when social clubs such as the Club within ENS caught the eye. The 10k Club was founded by ENS domain owners numbered 0-9999. New registrations and renewals have almost doubled since then.

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ENS peak income, coupled with the declining market, prompted the ENS Decentralized Autonomous Organization (DAO) to set aside funds for continued development. Johnson said revenue to finance development and maintenance “for the uncertain future” would help with the volatility of the project weather market.

“With this guarantee against market effects, the extra funds can be used in a cheaper way to contribute to the growth of the ecosystem.”

However, the bullish indicators were not reflected in ENS prices. The token has steadily declined since its launch in November 2021, when all .eth domain holders received some of the supply. ENS fell 86% from an all-time high in November, to $ 12.21 according to CoinGecko.

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