A number of industries and tech personnel are shifting from Web2 to Web3 with this move, understanding of blockchain technologies are also distributing.
The Ethereum Name Service (ENS) is a project that’s searching to assist facilitate Web3 adoption by looking into making it simpler for DApp users to have interaction using the Ethereum network. This is achieved through the development of human-readable Ethereum addresses that may be changed into the standard machine-readable alphanumeric codes.
Data from Cointelegraph Markets Pro and TradingView implies that since hitting a minimal of $14 on April 26, the cost of ENS has surged 91.75% to some daily high at $27.65 on May 2 among soaring 24-hour buying and selling volume.
Three good reasons for that recent cost turnaround for ENS range from the sudden rise in interest in 3- and 4-digit ENS domains, a brand new record large number of domain registrations in April and a boost in protocol revenue which has helped boost the available funds towards the ENS decentralized autonomous organization (DAO).
Interest in three or four digit domains soars
The sudden increase in the cost of ENS started on April 26 which move coincided having a boost in the interest in 3- and 4-digit ENS domains, which possibly grew to become the main focus from the nonfungible token (NFT) community.
Together with new registrations, secondary sales for ENS names on OpenSea arrived at an optimum 446 Ether (ETH) price of volume within the last week.
Some analysts recommended the interest in shorter ENS domains might be linked to NFT investors preferring the shorter tag, which reflects the token ID of the NFT — but right now, it is really an misguided theory.
Record domain registrations in April
The sudden boost in registrations in the finish of April capped off an archive month for that project, which saw 162,978 new domain registrations, according to data from Dune Analytics.
The record month of growth for ENS also helped push the entire registration beyond the a million mark the very first time ever.
*A Million- ENS names have finally been produced! pic.twitter.com/4EnmqeijzV
— ens.eth (@ensdomains) May 1, 2022
During the time of writing, the daily mint count for May 2 is 48,702 and there has been as many as 1,063,982 ENS domains minted by 393,894 unique participants because the project launched.
Related: The idea and way forward for decentralized Web3 domains
Growing protocol revenue
Because of the restored curiosity about ENS domains, the protocol saw its second greatest monthly revenue at $7,838,962 produced by registrations and renewals.
Which makes a complete yearly revenue of $42,767,760 for that protocol, that is ultimately redirected into the project’s treasury for use through the ENS DAO.
Based on ENS, the main reason for registration charges would be to “prevent the namespace from becoming overwhelmed with speculatively registered names.” Another purpose of the charges would be to provide enough revenue towards the ENS DAO to finance the continuing development and improvement of ENS.
All ENS token holders can take part in governance votes with the DAO.
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