ENS Crosses 2M Domain Names

After a record performance in July, over 2 million domain names have been registered on the Ethereum Name Service (ENS).

Record numbers for July

Ethereum Name Service has achieved record performance of over 2 million domain name registrations in just over five years of existence. Additionally, a significant portion of these domain names were created in July 2022, when the project saw the largest monthly increase in revenue. The 2 million domain names are significant because the first million names were registered in five years and the second million took only 3.5 months to register.

According to Dune Analytics, out of 2 million addresses, there were 378,804 significant registrations in July, when the protocol’s revenue also climbed above $ 6.8 million. The July numbers are the highest monthly registrations so far, the closest being May (about 365,000 registrations), almost 124% higher than that of April (about 163,000 registrations). The market turmoil related to Terra LUNA had affected the June numbers, which only saw 122,000 ENS registered. However, the July numbers indicate that the market is recovering.

Domain renewals are also on the rise

Experts believe the sudden spike in ENS adoption is due to the upcoming Merge upgrade when the Ethereum network switches to a Proof-of-Stake (PoS) protocol and thus significantly reduces the network’s gas tariffs. Additionally, many celebrities have also bought ENS domains, choosing to show it off on Twitter and other social media platforms, inspiring the masses to do the same.

However, it’s not just domain name registration that has seen an increase in recent months. The data suggests that more users are choosing to stay within the ENS ecosystem as the number of renewals has also increased. The one-year period from May 2021 to April 2022 saw monthly renewals in the four-digit range. However, May 2022 saw around 16.6,000 ENS domain renewals, with another record number in July, with 25.8,000 renewals.

What is ENS?

The Ethereum-based naming system allows users to secure ENS domain names, which function as non-fungible tokens (NFTs) and can be bought and sold on NFT markets such as OpenSea. ENS is basically a decentralized Web3 protocol that assigns complex strings of machine-generated character-based alphanumeric information to human names. The system allows users to create simple usernames for complex wallet addresses and decentralized websites. For example, it can map machine-readable wallet addresses like ‘7g978dn39ji9sx’ to a human-readable name like ‘ABC.eth.’ Basically, ENS is an NFT that can act as an ETH wallet address, cryptographic hash, or a website URL.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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