Statistics have shown that interest in digital collectibles is shifting from Non-Fungible Tokens (NFTs) to Ethereum Name Service (ENS).
The mania on digital collectibles appears to be far from over, with on-chain data pointing to a surge in the trade volume of ENS. This demand surge was triggered by the $316,862.81 purchase of “000. eth,” the second-largest deal for a domain name. The current record purchase for an ENS domain is 420 ETH, worth $1.5 million and used to purchase the paradigm. eth in October 2021.
The Ethereum Name Service is a distributed, open, and extensible naming system based on the Ethereum blockchain that can be used to replace public addresses. The main advantage of using ENS is that it is much easier to remember than a long and complicated Ethereum address. According to Dune Analytics, the transaction count on Ethereum this week is on course to set a new all-time high.
Source: Dune.com
According to statistics, interest in digital collectibles may be moving from NFTs to ENS. This narrative is supported by on-chain data, which shows an increase in domain name service trade volumes.
The data reveals a surge in Ethereum domain name sales within the past few weeks, as NFT purchases fell. This trend is likely due to the fact that more people are interested in buying ENS domains, which can be used to store digital collectibles and other assets on the Ethereum blockchain.
ENS Trade Volume Triples In 24 Hours
Earlier indications have shown that new ENS domain registrations grew from around 12,000 to over 35,000 between 3rd and 4th July. This is a three-fold increase in new registrations in just one week. Data from NFT stats also show that the price average for ENS rose to almost 4M with the purchase volume also rising significantly.
Ethereum Name Service price chart, source: NFT stats
There are many reasons why people are interested in ENS. A major reason is that it can be used to create human-readable names for Ethereum addresses. This is convenient for both users and developers, as it makes it much easier to remember addresses. This provides a level of security and stability that is not possible with traditional DNS.
NFT Interest Plummet Amidst Rising ENS Demand
The rise in popularity of ENS can be attributed to a number of factors. Firstly, unlike NFTs, which are largely traded on centralized exchanges, ENS names can be bought and sold on decentralized exchanges (DEXes). This allows for a greater degree of decentralization and eliminates the need for trust in a central entity.
Meanwhile, despite the push for more, NFTs have continued to lose popularity. Google Trends data shows a clear decline in the interest for NFTs since mid-March. In this same period, the Ethereum NFT space appeared to be on course for another rally after recording high activity levels. In April the Bullish sentiments for Non-Fungible Tokens(NFT) appeared to be driving the market towards a new significant milestone.
More data suggest that interest in NFTs is waning, while ENS trades are on the rise. This is likely due to the fact that ENS provides a number of advantages over NFTs, such as being cheaper and more decentralized. Additionally, the use of ENS names can be extended beyond digital collectibles to a variety of other use cases. As such, it is likely that the trend of increased interest in ENS will continue in the future.
Do you think the interest in ENS will continue to grow? Let us know your thoughts in the comments section.
