Ethereum Name Service Domains Surpass 1M and Stoke Burn Rate

Demand for Ethereum Name Service domain names is surging.

On May 2, the blockchain-based naming protocol known as ENS surpassed the milestone of one million created names.

A record 63,723 names were registered on May 2, and10,000 to 20,000 were registered daily over the past seven days according to Dune Analytics. Prior to the surge, the daily record for new ENS registrations was 7,125 on Nov. 10, 2021.

The spike in registrations has seen ENS overtake OpenSea to rank as Ethereum’s top gas-burning protocol for the past 24 hours with 1,274 ETH destroyed.

Ethereum burn leaderboard. Source: Ultra Sound Money

More than 1.08M ENS names have been created all-time. ENS is estimated to have generated $43.2M in revenue during just this 2022 so far.

On May 2, ENS also recorded daily revenue of $1.95M for the protocol, according to Nick Johnson, the project’s founder and lead developer.

The spike in registrations coincides with rocketing floor prices for ENS names comprising three or four digits. FiveDigitClub noted that the current floor price for three-digit names is 44 ETH, while four-digit names are commanding north of 2.45 ETH after a surge in volume.

Four-digit Names

Primary sales for both three and four-digit ENS domains are sold out, with the primary sales for a recently issued batch of numeric four-digit names selling out in less than six hours for $200 each. Five-digit names currently have a floor price 0.027 ETH and are yet to sell out.

ENS currently ranks as the top NFT project by number of sales and traders over the past 24 hours, with nearly 18,700 traders engaging in 70,526 transactions according to DappRadar. ENS has overtaken Bored Ape Yacht Club to rank fourth by volume with $10.3M, sitting behind Otherdeed with $177.3M, Terraforms with $21.3M, and Mutant Ape Yacht Club with $14.5M.

The surging activity also caused recent outages for the ENS website amid the latest four-digit drop. Users were forced to use alternate routing to access the platform while its main host was down.