Business In News
- Ethereum Name Service (ENS) domain names have clocked in more than 2.3 million registrations.
- It is now one of the top 3 collections on OpenSea by 30-day volume.
- Speculation and adoption among prominent individuals are possible factors behind the hype for ENS domains.
ENS domains remain in favor despite the crypto bear market
This just in. The total number of Ethereum Name Service (ENS) registrations has surpassed 2.3 million, making it one of the top 3 collections on OpenSea by 30-day volume.
Based on Dune analytics data by @makoto, ENS now boasts 2.367 million domain names, with 553,842 unique participating addresses in total.
These unique NFT domains started to gain traction in April when traders stepped in to capitalize on the hype. Many also believe that inherent utility and adoption among individuals like Snoop Dogg and Vitalik Buterin helped in the skyrocketing growth of ENS domains.
Given that, let’s take a look at what Ethereum Name Service is and what makes it a popular choice among NFT enthusiasts despite the bear market.
What is the Ethereum Name Service?
To begin with, the Ethereum Name Service is a “distributed, open, and extensible naming system based on the Ethereum blockchain”. It allows users to create human-readable names for their wallet addresses and decentralized websites.
For instance, instead of the full 42 hexadecimal characters like 0x10F57Cf837f685A29BC121669ba010fc0824EbaC, you can use something like “000.eth” or “Alice.eth” to replace it.
Make no mistake, there are many things that you can do with your ENS domain. If it is linked to your wallet address, it will act as a payment gateway. If it’s linked to websites, smart contracts, or transactions, it will serve as an easy-to-remember URL for all.
How to get an ENS domain?
Getting an ENS domain is pretty easy. All you need is a crypto wallet and some ETH. Then, head over to the ENS app to check for the domain name’s availability. If available, you will be prompted to pay the registration fee for a certain period (1 year at least) with the gas fee in ETH.
Take note that three-letter and four-letter .eth names are more costly than those with five-plus characters. The reason is that they are much rarer and more unique, thus commanding higher prices in the open markets.
As of writing, three-letter .eth names are around $640 in ETH per year, four-letter .eth names are about $160 in ETH per year, and five-plus-character .eth names are around $5 in ETH per year. (Note: Gas fees are not taken into account yet)
Other than that, those who opt for a longer registration period (more than one year) will also enjoy a lower annual premium. But of course, this depends on your own budget.
Just like NFTs, holders may flip their ENS domains for hefty sums as well. Last October, someone paid a whopping 420 ETH or around $1.5 million for paradigm.eth! In July, the 000.eth domain name was sold for 300 ETH, or around $320k at the time.
On top of that, there can only be so many .eth addresses available. With the registration count going up every day, interested buyers may want to get their own ENS domains before it’s too late.
Three and four-letter ENS names: they’re a fixed-supply asset *and* you can do things with them!
— vitalik.eth (@VitalikButerin) August 7, 2020