The Massive Rise in Ethereum Name Service (ENS) NFTs And Explanation
Since the beginning of 2022, the Crypto market has been constantly battered by a series of bankruptcies such as the giants Celsius, Voyager, or the popular GameFi platforms in the bull season such as Axie or the Opensea exchange also saw a significant decrease in revenue. However, despite the crypto winter, Ethereum Name Service (ENS) is a project that continues to perform well. In this article, let's learn more about The Massive Rise in Ethereum Name Service (ENS) NFTs.
The Massive Rise in Ethereum Name Service (ENS) NFTs in Numbers
The project's outsized utility in comparison to other NFT collections, as well as the fact that it addresses an existing pain point among crypto-natives and newcomers, has propelled it to widespread adoption. The June 2021 analysis of ENS activity by Ethereum blockchain-explorer Etherscan reveals some key insights that demonstrate the project's adoption. Consider the following figures, which depict ENS's recent growth.
- 30x: Between February and June of 2021, the number of ENS domain registrations increased 30 times. According to the analysis, monthly registrations averaged 35 domains in the first two years following the launch of ENS. This figure gradually increased and eventually skyrocketed during the NFT boom of 2021, reaching a monthly registration rate of 10,700 in June. The analysis also discovers a negative relationship between gas prices and domain registrations, with lower transaction fees encouraging more registrations during the month of June.
- USD$291M: The approximate value of ether held in accounts associated with the subset of ENS domains examined in the report is USD$291M. Accounts linked to these domains also held approximately USD$34.6 million in wrapped ether (WETH), USD$23.5 million in USD Coin (USDC), and USD$21.8 million in Uniswap coin (UNI). These addresses' collective ether holdings account for 0.11% of total supply.
- USD$2.3M+: the estimated annualized revenue earned from registration and renewal fees paid by the report's subset of ENS domain owners. The majority of this would be derived from longer domain names, which, as previously stated, are both more common and less expensive to keep registrations for. However, with rising registrations of 3-4-character domains observed throughout 2021, revenues are expected to gradually increase in the future.
An updated analysis of registration volumes and revenues reveals that ENS's success has continued throughout the rest of the so-called NFT Summer. The total monthly revenues generated by registration and renewal fees reached an all-time high in August of 2021, and total revenues in only the first week of September have already exceeded 37% of total August revenues. If this rate of growth continues, ENS protocol revenues in September will be 50% higher than the previous month. Similar growth can be seen in the number of monthly registrations and renewals, with August representing an all-time high and the first week of September also showing impressive growth.
The Massive Rise in Ethereum Name Service (ENS) NFTs in 2022
Let's take a look at some of the achievements of the ENS project in 2022 as follows.
Revenue
Monthly revenue from new and renewed domain names increased significantly in comparison to 2021. If in 2021, the ATH revenue of newly registered domains is $2.34 million and renewals are $233 thousand, this rate is approximately 10%. In 2022, the ATH revenue from newly registered domain names is $8.54 million, while renewal revenue is $1.02 million, representing a 12% growth rate.
Although revenue decreased in June, July, and August 2022, it is important to note that revenue from domain name renewal accounts for approximately 20% of new registration revenue, which is significantly higher than the previous period for other companies. At this point, there has been no new money inflow into the market, so it is still sideways. On the other hand, other blockchain platforms have projects that provide domain names, such as Space ID on BSC, EvmosDomain on Evmos,.sol on Solana,.find on Flow. However, ENS's a renewal/new registration rate remains higher than before, demonstrating that ENS has a fairly loyal user base. It is worth noting that the new renewing user file was created at least one or two years ago, demonstrating that this is a seasoned group of crypto users who stick with crypto. And here is the ENS (Ethereum Name Service) Guru team, which will contribute to consistent revenue as well as the spread of Domain NFT to the Web 3 world.
Users Activities
According to existing ENS platform statistics, 174k new .eth registrations on Oct while the total has 2.75M names.
- 25k new eth accounts w/ at least 1 ENS name (total 594k)
- 8,173 avatar records set (total 58k)
- 1,851 DWeb content records set (total of 15,685)
- $2.9m in protocol revenue
Explanation About The Massive Rise in Ethereum Name Service (ENS) NFTs
So, what are the reasons behind The Massive Rise in Ethereum Name Service (ENS) NFTs?
The simple answer is that the project understands its users clearly and has a great solution to satisfy customer’s demands.
Can you recall the location of your wallet? The standard range is 0x12345678b...... 2345ABCDE can now be replaced with.eth, for example, jennifer.eth. And with such an NFT Domain name, you can memorize it completely without having to check each character when entering.
If you transfer $10,000 ETH to someone and only enter one incorrect character in such a long sequence, you will lose $10,000 ETH. And with the.eth domain name, you can easily check for errors in the import process by entering for example hello.eth and transfer.
In another case, if your twitter name is Jennifer, you can now set up your wallet with the domain jennifer.eth, and you can verify your information from your wallet without logging into my Twitter account, and you won't have to worry about being hacked.
To entice Web 2 users to migrate to Web 3, it must be as simple, easy to use, and secure as, if not better than, Web 2. The Ethereum blockchain underpins ENS's NFT domain name, which is the most secure and decentralized blockchain available today. The ability to attract billions of Web 2 users to the Web 3 world is due to its high applicability and simplicity. The ENS (Ethereum Name Service) business model includes a feature that can generate a consistent revenue stream by renewing domain names year after year. This is what is allowing ENS to grow sustainably despite the current "bear" period.
Conclusion
That is all information about The Massive Rise in Ethereum Name Service (ENS) NFTs.
The ENS project is a boon to the cryptocurrency community as a whole, providing a tried-and-true solution to a critical UX issue as well as an existential barrier to adoption. The spirit of ENS is critical to the advancement of activity in digital asset markets, and the functional utility of domain name NFTs makes them among the most objectively valuable tokens currently trading on the market.
Website: https://ens.domains/
Twitter: https://twitter.com/ensdomains
Common Asked Questions
What is ENS?
The Ethereum Name Service (ENS) is a blockchain-based distributed, open, and extensible naming system.
What happens if I forget to renew a name's registration?
There is a 90-day grace period after your name expires during which the owner cannot edit the records but can still re-register the name. After the grace period, the name is available for registration by anyone with a temporary premium that decreases over the course of 21 days. The released name will continue to resolve your ETH address until it is overwritten by the new owner.
What distinguishes ENS from other naming services such as Namecoin and Handshake?
ENS extends the utility of DNS by providing decentralized, trustworthy name resolution for web3 resources such as blockchain addresses and distributed content, whereas Namecoin and Handshake attempt to replace all or part of DNS with a blockchain-based alternative.
About Market247.io
Market247.io offers fundamental and technical analysis of potential crypto projects and hidden gems. By doing so, we hope to bring information promptly to support investors in making investment decisions. All information provided by Market247.io is just a reference, not investment advice.
Follow us on:
Twitter: https://twitter.com/Market247_io
Telegram: https://t.me/Market247_news
Community: https://t.me/market247news
Facebook: https://www.facebook.com/groups/market247.io
Other posts
y00ts NFT Artwork - Creating More Than Just NFT PFPs
