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Will ENS’ focus on governance be enough to improve quarterly results?

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Will ENS' focus on governance be enough to improve quarterly results?

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  • 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


Is your portfolio green? Check out the ENS Profit Calculator


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.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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