The price of ENS has increased by more than 90% after the protocol surpassed 1 million registered domain names in April.
Several industries and technologies are moving from Web2 to Web3, and with it, awareness of blockchain technology is growing.
The Ethereum Name Service (ENS) is a project that aims to facilitate Web3 adoption by making it easier for DApp users to interact with the Ethereum network. This is achieved by creating human-readable Ethereum addresses that can be converted to regular machine-readable alphanumeric codes.
Data from Cointelegraph Markets Pro and TradingView shows that the price of ENS rose 91.75% from a low of $14 on April 26 to an intraday high of $27.65 on May 2 amid a raging 24-hour period of trading volume.
ENS/USDT 1-day chart. Source: Trading View
Three reasons for the recent price reversal in ENS are the sudden rise in demand for 3- and 4-digit ENS domains, a new record number of domain registrations in April, and a surge in magazine revenues that helped increase the funds available to ENS. decentralized autonomous organization (DAO).
Demand for 3-4 digit domains is on the rise
The sudden rise in ENS prices began on April 26, and the move coincided with an increase in demand for 3- and 4-digit ENS domain names that may have come to the attention of the Non-Fungible Token (NFT) community. .
Daily ENS registrations. Source: Dune Analytics.
Along with new registrations, secondary sale of ENS names on OpenSea peaked at 446 ether (ETH) last week.
Some analysts have suggested that the demand for shorter ENS domains may be due to NFT investors preferring a shorter tag that reflects their NFT token ID, but this is an unproven theory at this point.
April domain registration record
The sudden spike in registrations at the end of April marked a record month for the project, with 162,978 new domains registered, according to Dune Analytics.
Monthly domain registration. Source: Dune Analytics.
A record month of growth for ENS also helped the total enrollment to cross the 1 million mark for the first time in history.
At the time of writing, the daily coin supply as of May 2 is 48,702, and since the launch of the project, 393,894 unique members have created a total of 1,063,982 ENS domains.
Related: Concept and Future of Web3 Decentralized Domain Names
Increasing Magazine Revenue
As a result of renewed interest in ENS domains, the protocol has the second highest monthly registration and renewal revenue at $7,838,962.
Monthly income from registration/renewal for ENS. Source: Dune Analytics.
This amounts to a total annual protocol revenue of $42,767,760, which is ultimately funneled back into the project treasury to be used by the ENS DAO.
According to ENS, the primary purpose of registration fees is “to prevent namespace flooding with speculatively registered names”. The secondary function of the fees is to provide the ENS DAO with sufficient income to fund the ongoing development and improvement of the ENS.
All ENS token holders have the opportunity to vote on governance through the DAO.