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ENS network witnesses a revival, here’s how

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ENS domain names saw renewed interest in the last week. The rise in name registrations resulted in an uptick in network fees.

ENS network witnesses a revival, here's how

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  • ENS network fees rallied to an 11-month high on 13 August.
  • The growth in .eth name registrations in the preceding days led to the fee hike.

The Ethereum Name Service [ENS] logged its highest daily fees in 11 months on 13 August. The total fees paid to register and renew ENS domains on that day amounted to 137.536 ETH, or about $253,047, data from Token Terminal revealed. 

According to the on-chain data provider, the decentralized naming system protocol began to see an uptick in daily fees on 9 August. Between then and 13 August, daily fees paid to use the protocol climbed by over 200%.

Source: Token Terminal

Renewed interest in .eth names?

The surge in ENS’ network fees was due to a rise in the number of new .eth users, data from Dune Analytics showed. During the period under review, the count of new users of ENS’ human-readable names rose by 46%.

Within the same period, the daily count of .eth name registrations rallied by 66%. Likewise, the number of primary name set jumped by 47%. 

Source: Dune Analytics

When ENS names are registered, registrants reserve the prerogative to set these names as primary names. Once this is done, it means that when someone enters a user’s ENS name in a browser, it will resolve to the user’s Ethereum wallet address.

Time for a revenue increase?

A closer look at the ENS protocol revealed that the past few months were marked by a decline in its revenue. The revenue decline was due to an all-time low in interest in ENS domain names. 

According to Dune Analytics, the total revenue made from new name registrations and name renewals trended downward since February. Between then and July, this declined by 27%. So far this month, the ENS protocol has recorded $325,170 as revenue for name renewals and $789,572 for new name registrations.

Source: Dune Analytics

According to Token Terminal, the Ethereum Name Service (ENS) protocol’s revenue has decreased by 38% in the last six months and by 54% in the last year.

ENS and its tales of decline

The protocol’s native token ENS exchanged hands at $8.87 at the time of writing. According to CoinMarketCap, the alt’s value has fallen by 9% in the last month. 

An assessment of price movements on a daily chart showed that buying pressure has slowed. At press time, the token’s Awesome Oscillator was marked mostly by red histogram bars facing down. This suggested that the ENS market lingered in a bearish trend.

Lending credence to the above position, the alt’s negative directional index (red) rested solidly above its positive directional index (green). This showed that sellers controlled the ENS market at press time and have been so positioned since 11 August.

Lastly, key momentum indicators rested below their respective center lines at press time, suggesting an increase in capital outflow.

Source: ENS/USDT on TradingView

 

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Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
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