The Ethereum Name Service is having its best month on record for new registrations, account renewals, and revenue thanks to community awareness and low gas fees.
Lead Developer at Ethereum Name Service (ENS) Nick Johnson tweeted on May 23 metrics for Web3 domain service through May so far. He noted that the numbers were about to break existing records because they were already at all-time highs, “and there’s still a week left in May.”
May is now an all-time high for every ENS metric we track: registrations, renewals, revenue (ETH and USD), and revenue (ETH and USD).
And there’s still a week left in May.
— nick.eth (@nicksdjohnson) May 22, 2022
Jonson told Cointelegraph on Monday that the main factor contributing to increased demand in ENS domains is that it is a place where people can “form shared communities without any general structure imposed beforehand.” This has had amazing results for the domain service.
“ENS has reached a critical mass of awareness and adoption; most wallets support ENS names, so the usability factor is significant.”
ENS is an open source blockchain protocol founded in 2017 that allows people to assign a digital identity to their Ethereum (ETH) purse. Every name is a non-fungible token (NFT) that ends in .eth and can act as an address, a cryptographic hash, or the URL of a website.
The data shared by Johnson shows that there have been 304,968 new registrations, 13,260 renewals, and 3,165.85 ETH in revenue so far in May. All of these metrics leave behind previous highs.
Johnson also said “low gas rates definitely have an impact” on higher onboarding and renewal rates. Sending a quick transaction on Ethereum costs around 22 GWEI at the time of writing, worth around $0.92 according to gasprice.io. In periods of high volume, gas fees can be higher than $50, which can act as a deterrent to using the network unless it is in an emergency.
“You can register an ENS name of more than 5 characters for a year for $5, high gas rates can make the cost several times higher, so gas prices have a big impact on the affordability of the ENS names”.
Interest in ENS domains has been increasing rapidly since April when social clubs like the 10k Club within ENS gained wide attention. The 10k Club was formed by owners of ENS domains numbered between 0-9999. Both new registrations and renewals have almost doubled since then.
The ENS’s record revenues, coupled with a market downturn, have sparked plans at the ENS. decentralized autonomous organization (DAO) to save funds for continued development. Johnson stated that the proceeds scheduled to fund development and maintenance “for the indefinite future” would help the project weather further market volatility.
“With that guarantee against market effects, the additional funds can be used more freely to help grow the ecosystem.”
However, the bullish metrics have not been reflected in ENS prices. The token has been in steady decline since its launch in November 2021 in which all .eth domains headlines were airdropped a part of the offer. ENS is down 86% from its November all-time high at $12.21 according to CoinGecko.