Is ENS completely decoupled from the proliferation of Ethereum Name Service domains?

Web3 technology is a technology that keeps giving. We started by creating a variety of digital currencies that are free from regulatory controls. These currencies can be stored in a digital wallet that is accessible via your wallet address.

A wallet address consists of numbers and alphabets and is used to initiate sending and receiving digital assets. You should be familiar with the long wallet address in the format “1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa”.

Years later, we thought of “how to make this long format/unreadable wallet address human readable and accessible”. then arrive Ethereum Name Service (ENS) provides a solution to this problem. ENS stands for Names (in human-readable format) that allow cryptocurrency holders to have a single username for all cryptocurrency addresses and decentralized websites.

ENS has recorded significant growth since its establishment. actually on the 23rd of May Twitter The platform revealed that it recorded significant growth in registrations, renewals, revenue (ETH and USD) and earnings (ETH and USD) during the month of May.

Well, let’s see if the ENS token has followed a similar path.

one’s own mind

Despite the increase in registrations, renewals, and revenue on the ENS platform since the beginning of this month, the native token, ENS, does not appear to have made a fuss. Standing at $12.47 at press time, the token is down 39% in less than 25 days.

Source: CoinMarketCap

As a natural result, the market cap of the ENS token also plummeted. During the review period, its market cap decreased from $425 million to $256 million in the index.

Additionally, the movement in the price chart hinted at a generally bearish outlook for the token since the beginning of the month. This is the month for token distribution to increase so far as the leading indicators, RSI and MFI reach their lowest in the oversold zone.

ENSUSDT 2022 05 24 07 55 40

Source: TradingView

In the last 24 hours, trading volume has increased by 66%, but the price has decreased by 2%, maintaining stable circulation.

no place to hide

According to the chain’s data, so far the indicator tracking the token’s growth has recorded a decline.

The Daily Active Addresses that traded ENS tokens daily decreased to a high of 1423 on May 2nd. 139 at press time, a decrease of 90% within 30 days. Although registrations and renewals of domain name services continue to grow, more and more people are not interested in holding tokens.

Ethereum Name Service ENS 08.09.46 24 May 2022

Source: Santiment

The development activity of the network has also been hit. The index, which marked positions on 17 indices at press time, has been declining gradually throughout the month.

Ethereum Name Service ENS 08.38.10 24 May 2022

Source: Santiment

Moreover, even the whales have revealed a lack of interest in tokens this month. For trades over $100,000, the number of transactions peaked at 180 on May 3.

But since then, it has taken on a free-falling progression. At the time of publication, there were 20 cases. Similarly, deals over $1 million, which peaked at 41 on May 4, fell 95% within 30 days, to two at press time.

Ethereum Name Service ENS 08.18.04 24 May 2022

Source: Santiment

With the growing acceptance of domain names in the cryptocurrency space, fierce competition is expected in that space.

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