ENS in the starting blocks – The year 2022 was marked by many disasters in the crypto ecosystem. Nevertheless, some protocols have witnessed unprecedented growth. This is particularly the case ofEthereum Name Service (ENS) for whom 2022 has been a flourishing year.
ENS is on the rise
The protocol Ethereum Name Service or ENS, aims to facilitate the management of public keys by linking them to a domain name that is easily understood by humans. Thus, it was inspired by the Internet’s DNS protocol, which makes it possible to link an IP address to a URL.
For example, it is possible to link an Ethereum address to a domain name of the type journalducoin.eth.
Launched in May 2017, the protocol now counts more than 630,000 users unique with over 2.8 million ENS addresses created.
In practice, the year 2022 was a vintage year for the protocol. Indeed, according to information shared by the protocol, 80% of all ENS domain names were created in 2022.
September was the most prolific month, with over 400,000 new names domains created.
Under the hood, ENS take the form of NFTs. Thus, users can claim an address linked to their account via the creation of an NFT.
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The secret of such success
Several elements can explain the success encountered by ENS in 2022. Firstly, ENS domain names have massively used on social networks such as Twitter.
Secondly, ENS benefited from several major partnerships. Indeed, several centralized exchange platforms, such as Coinbaseadded the ability to use ENS domain names for transfers.
Finally, the success of ENS in 2022 can also be explained by the trend around NFTs in general. Indeed, the latter have witnessed an important speculation. In May 2022, ENS holders launched a private club called « 10k Club “. This includes all users with an ENS consisting of a number from 0 to 9,999.
Quickly, many two-, three-, and four-digit ENS sold for several thousand dollars. For example, the domain 000.eth was sold for the modest sum of 300 ETH last July, the equivalent of $315,000 at the time of the sale. For its part, the paradigm.eth domain was sold for 420 ETH in October 2021.
In addition, the ENS protocol has also gained notoriety after the launch of its own eponymous token. Launched in November 2021, it was distributed via an airdrop to all ENS domain holders.
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