- ENS saw a record-setting over 2.2 million .eth domain name registrations in 2022.
- The success of the protocol has driven Ethereum adoption and ETH burning.
Ethereum Name Service (ENS) had a record-setting year in 2022. According to data pointed out by the protocol, over 2.2 million ENS names were registered in 2022. The figure represents about 80% of all names that have been created in the protocol’s lifetime.
Congratulations @ensdomains on an amazing 2022! 🍾
2023 will be even better! 🚀
ethdotco.eth ❤ pic.twitter.com/UCBlEpAmPA
— Eth.co (@ethdotco) January 1, 2023
ENS is a distributed, open, and extensible naming system based on the Ethereum blockchain. It is the leading blockchain equivalent of Domain Name System (DNS) that assigns addresses on the internet. Particularly, ENS translates cumbersome Ethereum addresses comprising random machine-readable numbers and letters into memorable names.
Data from a Dune Analytics dashboard that tracks ENS registrations, the service recorded its highest number of new ‘.eth’ name registrations in September 2022. It recorded 437,365 .eth domain name registrations in the month. It also clinched major partnerships with crypto exchange Coinbase during the month.
Additionally, the service recorded domain name registration spikes in May, July, and August thanks to gas fee drops. Meanwhile, the month with the highest number of primary name registrations was May 2022 in which 31,379 primary names were registered.
2022 also saw the sale of some of the most expensive ENS .eth domain names. In Sept. 2022, pjfi.eth domain was sold for 350 ETH, worth $463,200 at the time. This makes it the second most expensive ENS domain name of all time. The third most valuable ENS domain is 000.eth, sold for around 300 ether on July 3, 2022.
According to a July report by Delphi Capital, traders are treating ENS names as an investment that can gain value much like NFTs. The protocol also succeeded in its lawsuit against DNS provider GoDaddy.
More use cases driving ETH adoption.
The success of ENS typifies the massive Ethereum adoption recorded in 2022. The protocol’s success has also contributed immensely to reducing the issuance of new ETH tokens.
Per data from Ultrasound Money, a platform that tracks ETH burning, ENS has helped burn over 24,000 ETH since burning was introduced. This is worth over $30 million at the current price of ETH.
The service has continued to see more integrations. Already in 2023, crypto and NFT tax software CoinLedger announced that the app has integrated ENS domains. CoinLedger users can now add their domain names and the app will import all their ENS-based transactions and calculate their taxes.
Meanwhile, the rising popularity of ENS domain names has seen ENS airdrop scams rise in number. In December, the protocol warned users to beware as it was not carrying out any airdrops.
“We have noticed a big surge in fake ENS airdrop sites over the last few days. Remember – ENS is *not* doing an airdrop, and has no plans to do so. Anything promising you one is a scam. Take care out there!” ENS stated in a tweet.
Credit: Source link
