After the Ethereum Name Service protocol crossed 1 million registered domain names in April, the ENS price surged by more than 90%.
Blockchain technology knowledge increases as a few businesses and IT employees transition from Web2 to Web3.
Ethereum Name Service is one initiative that makes it more straightforward for DApp users to interface with the Ethereum network and facilitate Web3 adoption. This is achieved by creating Ethereum addresses that humans can read and then transform into alphanumeric codes that computers can understand.
According to Trading View, the price of ENS has soared by 91.75% to a daily high of $27.65 on May 2 amid rising 24-hour trading volume after reaching a low of $14 on April 26.
In addition to a surge in demand for 3- and 4-digit Ethereum Name Service domains, a new record number of ENS domain registrations in April, and an increase in protocol income, the recent price reversal for ENS may be attributed to these three factors.
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The demand for Ethereum Name Service domains with three to four digits has skyrocketed
When the ENS value suddenly surged on April 26, it corresponded with a boom in the market for 3- and 4-digit ENS domain names, which may have been the attention of the NFT community.
In addition to new registrations, OpenSea’s secondary sales of Ethereum Name Service domains hit an all-time high of 446 Ether (ETH) in the past week.
NFT holders’ preference for a shorter tag, which represents the token ID of their NFT, has been theorized by confident analysts, although this notion has yet to be proved.
In April, a record number of domain names were purchased
According to certain statistics, end-of-month registrations surged by 162,978 new domain registrations, capping a record month for the project.
Additionally, the historic month of growth for ENS contributed to breaking the 1 million mark in overall registration for the first time in history.
May 2’s mint count is 48,702, and the total number of Ethereum Name Service domains coined by 393,894 unique contributors since the initiative began is 1,063,982.
Increasing the money generated by protocols
With revived interest in ENS domains, the protocol has seen its second-most excellent monthly income, with registrations and renewals totaling $7,838,962.
That works out to $42,767,760 in annual income for the protocol, which goes back into the ENS DAO’s treasury.
Preventing “speculatively registered names” from taking over the namespace, according to ENS, is the primary goal of registration costs. This income is also used to support the ENS DAO’s efforts to develop further and improve ENS. Every ENS token owner has the opportunity to vote in the DAO’s governance votes.
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