While cryptocurrency prices have continued to fall in 2022, registrations on Ethereum Name Service (ENS) have, for their part, experienced a significant boom. Indeed, of the 2.8 million existing ENS, 80% were created during the last twelve months.
ENS registrations exploded in 2022
If the past year has been catastrophic if we focus solely on prices, it has nevertheless been a pivotal year for many projects, who have set out to create solid foundations for the future. Among them is Ethereum Name Service (ENS), which saw 80% of its registrations in 2022.
In effect, 2.2 million ENS have been recorded over the last twelve monthswhile the protocol has just over 2.8 million in total:
Happy New Year everyone! 🎉
2022 was an incredible year for ENS! 🚀
Over 2.2m ENS names were registered in 2022 (that’s 80% of ALL names created) 🤯
If you’re ready for 2023, drop your ENS below ✨
— ens.eth (@ensdomains) January 1, 2023
As a reminder, an ENS is more or less 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 collated on Dune Analitics by Makoto Inoue, one of the Ethereum Name Service protocol developers, we can see that last summer was particularly prolific, peaking in September at 437,365 records :
Number of monthly ENS registrations in 2022
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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 make registrations of well-known brands or specific keywords with the sole aim 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 (NFT) on OpenSeawhile for his part, Vitalik Buterin was worried about the problems that this purely pecuniary dimension could bring.
Still 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 take into account 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 network, maybe just the bear market. The latter had the effect of reducing activity on the Ethereum (ETH) blockchain, thus mechanically lower transaction fees.
Since an ENS registration involves functions requiring much more gas than a simple transfer between two addresses, the process can quickly become expensive in the event of heavy use of the network. It is therefore likely that many investors benefited from falling transaction costs to acquire, too, their own name on Ethereum.
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Source: Dune Analytics
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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