- ENS outranks major cryptocurrencies in terms of governance.
- Whale interest remains high despite the declining token activity.
According to recent data, the Ethereum Name Service (ENS) outperformed other major cryptocurrencies in terms of governance activities.
Apart from MakerDAO and Optimism, ENS’ governance activity was the highest in the crypto space. The increasing activity on ENS’s governance DAO indicated the enthusiasm of an invested and engaged community.
Read ENS’s Price Prediction 2023-2024
Source: Flipside Governance
Looking at the overall performance
However, despite the increasing activity on the governance front, the quarterly performance of ENS was lackluster. The number of renewals and registrations fell over the last quarter, according to Messari.
Source: Messari
One of the reasons for the decline could be attributed to the declining number of new addresses on the network.
According to Dune Analytics, new addresses joining the network declined over the past few months.
As a result, there was a fall in revenue generated by ENS. Over the last three months, the revenue collected by ENS fell by 54.3%, according to the token terminal.
Source: Dune Analytics
Impact on the ENS token
These factors also impacted the activity of the ENS token.
For instance, the network growth decreased, indicating that the number of new addresses transferring ENS fell. Additionally, the velocity also declined, implying that the frequency with which the token was being transferred had taken a south road.
Despite the decline in performance, large addresses continued to show interest in the ENS token. And their interest could be one of the reasons why ENS observed a surge in its prices.
However, a high concentration of ENS tokens with large addresses could impact retail investors in the long run as a large-scale sell-off from whales would negatively impact the price.
Source: Santiment
Even though the current state of the ENS token may not have a positive outlook, the increasing number of developments on the network could invite interest from potential investors
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Overall, while ENS has faced challenges in recent months, the network’s focus on governance can offer hope for a rebound in its performance.
That being said, the community’s continued engagement and support will be crucial to ensuring the success of the network going forward.
