Demand for ENS domain returns to previous levels after a recent surge saw the total created names surpass one million.
A significant surge in newly registered users on the ENS domain saw the recorded number exceed 1 million. This sudden spike points to the growing awareness about blockchain technology that has seen industries and individuals switch from web2 to web3 services. The ENS helps facilitate the transition and assists DApp users in interacting with the Ethereum Network.
Source: Dune Analytics
However, on-chain data from Dune Analytics shows that the demand has fallen to levels recorded before the sudden surge. Before April 24, the number of daily registered domains oscillated between 5000 and 1800, as seen in the chart. Afterwards, with growing demand, the number rose to 20,000 before a sharp increase to over 60,000.
Subsequently, demand has waned, with newly created names back to the 20,000 area.
Demand Surge May Be Closely Linked With Board Ape Metaverse Frenzy
The rise in demand for ENS is closely linked with the growing demand for 3- and 4-digit domain names from the NFT community. Analysts suggested that the need could be connected to NFT collectors who prefer a shorter tag to show the token ID of their NFT.
These suggestions may not be far off the mark, especially after the recent Bored Ape Metaverse Frenzy. Last weekend, Yuga Labs, behind the famous Bored Apes Yacht Club line of NFTs, launched a virtual land sale. The event’s popularity was so high that it caused ripple effects across the Ethereum blockchain, disrupting activity and driving up transaction fees.
Consequently, the anticipation for the Otherdeeds land sale may have pushed the demand for ENS domains to facilitate an easy purchase. Coincidentally, it may have also contributed to the fee spurt that occurred once the sale when live.
According to IntoTheBlock, the #BAYC Otherside land sale saw Ethereum process more fees in three hours than in the previous two weeks. Also, the quantity of ETH burned reached an all-time high, implying an 18% decline in supply if annualized.
Finally, the growing adoption of Blockchain technology will see more companies switch from Web2 to Web3. This migration would increase the demand for ENS and other similar domain services in the industry. Therefore, we can expect further surges in new registrations for domain names.
Do you think the ENS will see another surge in demand as it recently has as more people enter the web3 space? Let us know your thoughts in the comments below.
Chris is a crypto enthusiast and a firm believer in the blockchain’s ability to create a new financial paradigm. Through writing, Chris hopes to expose the intricacies of this disruptive technology and how it is beneficial to Africans and developing countries. He aims to give readers a rational and unbiased outlook of the industry by equipping them with the necessary information to make enlightened investment decisions.
