Registration of Ethereum Name Service Surged Dramatically This Month

Written by C, Fiona

Last updated: 2022-05-24

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Due to the lower registration fees in the name of Ethereum (ENS) and the month of renewal, it has set a new record in the name of Ethereum (ENS).

Lead developer Nick Johnson said on twitter that the new registrations of Ethereum domain names will break the record by the end of this month. “May is now a record high for every ENS indicator we track – registration, renewal, revenue (ETH and USD) and revenue (ETH and USD),” he said.

Ethereum domain name, similar to the website address in Web 2.0, was introduced into Web3 by the ENS protocol established in 2017. Each domain name is essentially a domain name The non fungible token (NFT) at the end of eth is cast on the Ethereum blockchain and can be used as wallet address, decentralized website address or encrypted hash. Domain names can also be traded in secondary markets such as opensea.

Gasoline Prices Have Played a Huge Role in the New Registration

Jonson said that one of the main attractions of the ENS domain name is that it is possible to belong to a shared community without having to conform to a predetermined organizational structure. “ENS has reached the critical mass of recognition and adoption; most wallets support ENS names, so usability factors are important.”

Like any domain name on Web 2.0, fees must be paid regularly after initial registration to maintain ownership of the Ethereum domain name. These fees are denominated in US dollars, but gas fees must also be paid. Johnson believes that the low gas fee is the reason for the 304698 new registrations and 13260 renewals seen this month.

“You can register an ens name with more than five characters for $5 a year – high gasoline costs can double the cost, so gasoline prices have a great impact on the affordability of ENS names,” Johnson added.

Since April, social clubs (such as the 10K Club composed of owners of ENS domain names numbered between 0-9999) have attracted attention, and people’s interest in ENS domain names is also increasing. Since then, new registrations and renewals have almost doubled.

The record revenue of ENS and the downturn in the market triggered the plan of the decentralized autonomous organization (DAO) of ENS to hide funds for sustainable development. Johnson said that “in the uncertain future”, the income used to fund development and maintenance will help the project resist further market fluctuations.