Ethereum Name Service（ENS）Registration Surged By 200% Within A Week

[TL; DR]

The domain name in web3 is similar to the ones in web2.

One of the popular domain name providers in web3 is the Ethereum Name Service (ENS).

The Ethereum Name Service allows internet users to create a unique username that will serve as their identity in their wallet addresses and decentralized websites.

The Ethereum domain name allows you to add a personal touch and replace the ambiguous private address.

Instead of using a series of numbers and letters, you can pick a name and add “.eth” as your domain name.

Since the introduction of the Ethereum Name Service in 2017, it has continued to dominate over other domain name services.

Between July 2nd and 3rd, registrations for Ethereum domain names surged by over 200%.

The highest domain name registration on the Ethereum Name Service occurred in May 2022 when about 365, 652 web3 users registered.

As of July 2022, there are about 1.4 million active domain names on the Ethereum Name Service.


Keywords: Ethereum, domain, name, web3, registration, Ethereum Name Service.


[Full Article]

Every web and technology era comes with unique domain names. Web 2 was characterized by domain names such as “.com, .org, .net” and a host of others. Since Web3 took the world by storm, users have continued to embrace the domain names in Web3.

One of the popular domain names in Web3 is .eth. It is an Ethereum domain that has continued to attract many users and is being used across the blockchain ecosystem.

In this article, we shall identify the Ethereum Name Service (ENS) and the recent surge in the ENS domain registration.


What Is Ethereum Name Service?

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Image: Medium

The Ethereum Name Service (ENS) is an open and distributed naming service on the blockchain network. It consists of a domain name protocol built on the Ethereum blockchain. The Ethereum Name Service allows users to create a username that will serve as their unique identity on all their wallet addresses and decentralized websites.

The Ethereum Name Service is a replica of the domain name in Web2. However, the domain name in web3 allows for a personal and individual touch. The domain name in web3 aims to replace a wallet’s private address using a human-friendly name.

The Ethereum Name Service, being the most popular web domain provider in web3 helps map machine-readable wallet addresses to a human-readable name. For instance, a machine-readable name like '6f867cm28ih8wk' can now be converted to 'GATES.eth.'

The Ethereum Name service enables cryptocurrency users to buy and manage their domain/usernames on Ethereum. The ENS simplifies decentralized transactions and eliminates the hassle of machine-readable addresses.

Most times, machine-readable addresses contain a series of letters and numbers that might be hard to remember. Instead, Ethereum has developed the domain service to enable you to pick a simple name you can never forget and merge it with the ‘.eth.’

For every domain name ending in ‘.eth, a nonfungible token is minted on the Ethereum blockchain. You can access a decentralized website using web browsers like Brave browser or browsers with Metamask extension. The Ethereum Network Service can also be used as a crypto wallet address.


The Surge In Ethereum Name Service

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The Ethereum Network Service is no doubt leading the Web3 domain market. The renewed interest in domain names started in April and was fueled by forming social clubs for holders of ENS domain names.

These holders and their domain names were likened to a privilege or a higher social status in the blockchain ecosystem. One of such clubs is the 10K club formed by owners of domains 0-9999.

The Ethereum Name Service was first introduced in 2017. As of June 2022, the Ethereum domain name covers over 99% of domain name NFT volume on Open Sea, followed by other domains like Unstoppable and Decentraland Domains.

The Ethereum Name Service shows growth of over 200% in new registrations. The Ethereum Name Service offers growth of over 200% in new registrations. The second-largest sale for a particular ENS domain name, ‘000.eth,’ was executed for 300 ETH. This singular sale raised the daily revenue of the Ethereum Name Service to about $684,000.

Similarly, the highest domain name registration occurred in May 2022. In this period, about 365,652 web3 users registered on the Ethereum Name Service, totaling about 3899.7 ETH. In June, 122,000 new users registered for the .eth domain name, and the ENS decentralized autonomous organization recorded about 2500 ETH.

Conclusively, the sales of the ‘.eth’ domain name between July 3rd and 4th showed a surge of over 200% within a week. It is considered the second largest domain name sale and registration on ENS.


Gas Fees In Ethereum Domain Name.

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There are about 1.4 million active domain names on the Ethereum Name Service. Once web3 users register, they are expected to pay a fee denominated in US dollars, and the payment should be made at regular intervals.

Every user is expected to renew their domain name, which incurs a gas fee. The more people register a new domain name, the less gas fee. Between July 3rd and 4th, the gas fees were at their lowest.

The gas fee continues to be one of the roadblocks to Ethereum's mainstream dominance. Developers are, however, working towards reducing the gas fee and integrating a better mechanism to minimize the gas fees charged on the Ethereum network, including the Ethereum Name Service.


Conclusion

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Image: CryptoShrypto

The Ethereum Domain Name Service has continued to receive rising engagements and increased registration. The event of July 3rd and 4th triggered a chain reaction of purchases and saw an increase in enrollment to about 200%.

There are expectations that ENS will maintain the 99% increase across the web3 domain market, and other domain name providers will spring up soon.






Author: Valentine. A, Gate.io Researcher

This article represents only the researcher's views and does not constitute investment suggestions.

Gate.io reserves all rights to this article. Reposting of the article will be permitted, provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.