While cryptocurrency prices have continued to fall in 2022, Ethereum Name Service (ENS) registrations have, for their part, experienced a significant boom. Indeed, of the 2.8 million existing ENSs, 80% were created in the last twelve months.
ENS registrations exploded in 2022
If the past year was catastrophic if we focus solely on pricing, it was nonetheless a fundamental year for many projects, who set out to create solid foundations for the future. Among them is Ethereum Name Service (ENS), which saw 80% of its registrations in 2022.
Indeed, In the last twelve months, 2.2 million ENSs were registeredwhile the protocol numbers just over 2.8 million in total:
Happy New Year to all! 🎉
2022 has been an incredible year for ENS! 🚀
Over 2.2 million ENS names were registered in 2022 (that’s 80% of ALL names created) 🤯
If you’re ready for 2023, leave your ENS below ✨
— ens.eth (@ensdomains) January 1, 2023
As a reminder, an ENS is roughly the equivalent of Web3-like domain namesand can for example be used to simplify the long series of alphanumeric characters of an address.
From the data collected on Dune Analitics by Makoto Inoue, one of the developers of the Ethereum Name Service protocol, we can see that last summer was particularly prolific, peaking in September at a record 437,365 :
Number of ENS monthly registrations in 2022
👉 To go further – Learn more about what Ethereum Name Service is
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ENS as speculative investment vehicles
Beyond the concrete cases of application allowed by the ENS, these are also used for speculative purposes. Indeed, investors register well-known brands or specific keywords with the sole purpose of being able to resell them at a higher price in the future.
Last September, these same ENS became the most traded non-fungible tokens (NFTs) on OpenSeawhile on his side, Vitalik Buterin was concerned about the problems that this purely financial dimension could bring.
Again according to data from Makoto Inoue, the 2.8 million ENS are shared among just over 630,000 unique addresses. However, this metric does not account for protocol users who use multiple addresses to distribute their records. This variable therefore further concentrates the quantity of ENS already issued.
Besides the speculative aspect, one of the reasons why the number of registrations has exploded on the net, maybe just the bear market. The latter had the effect of reducing the activity on the Ethereum (ETH) blockchain, therefore mechanically lower transaction fees.
Since an ENS registration involves functions that require much more gas than a simple transfer between two addresses, the process can quickly become expensive under heavy network usage. It is therefore likely that many investors benefited from the reduction in transaction costs also acquire its own name on Ethereum.
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Source : Dune analysis
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I timidly discovered the world of blockchain in late 2018 during my quest for financial freedom. Initially invested moderately, only two years later I took the bet of betting everything on the movement that was then taking shape. I then dedicate 2021 to training better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I know, I want to share with you.
Vincent Mayor
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