According to head developer Nick Johnson, new registrations for Ethereum domain names are expected to break records by the end of the month. He added through a tweet that Every single ENS measure they track — registrations, renewals, revenue (ETH & USD), and income – has now reached an All-Time High this month. Moreover, there’s still a week left in May.
The ENS protocol, developed in 2017, introduced Ethereum domain names, which are equivalent to website addresses in Web 2.0. Each domain name is a non-fungible token (NFT) created on the Ethereum blockchain that may be used as a wallet address, a decentralized website address, or a cryptographic hash. On secondary marketplaces like OpenSea, domain names can also be traded.
According to Jonson, one of the most appealing aspects of ENS domains is belonging to a shared community without needing to follow a specified organizational structure. In addition, he says that ENS has reached a critical mass of acceptance and recognition. Furthermore, most wallets support ENS names; thus, usability is important.
Impacts of gas prices on Ethereum Name services
To retain ownership of an Ethereum domain, a fee must be paid at regular intervals after the original registration, much like any other domain name on Web 2.0. These fees are in US dollars; however, you must additionally pay for gas. Low gas prices, according to Johnson, are the basis for the 304,698 new registrations and 13,260 renewals recorded this month.
Johnson further notes that You can establish a 5+ ENS name for a year for $5. In addition, high gas costs can make the cost several times. Therefore, gas prices have a major impact on the affordability of ENS.
Since April, when social clubs like the 10k Club, which was created by owners of ENS domains numbered between 0-9999, began to attract notice, interest in ENS domains has grown. Since then, both new registrations and renewals have roughly doubled.
Due to ENS’s record-high revenues and a market downturn, the ENS decentralized autonomous organization (DAO) has decided to set aside assets for future development. The income set aside for development and maintenance “for the foreseeable future,” according to Johnson, will allow the project to withstand further market instability.