The total number of ENS domain name registrations exceeded 1 million, setting a new record, triggering a 90% increase in ENS tokens

The total number of domain name registrations for the Ethereum Name Service (ENS) has exceeded 1 million, setting a new record high. Data shows that since hitting a low of $14 on April 26, the price of ENS tokens has soared 91.75% to a daily high of $27.65 on May 2.

Ethereum Name Service is a project that aims to help promote Web3 adoption by making it easier for DApp users to interact with the Ethereum network. This is achieved by creating human-readable Ethereum addresses that can be converted into normal machine-readable alphanumeric codes.

Three reasons for ENS’ recent price recovery include a sudden increase in demand for 3- and 4-digit ENS domains, record-breaking domain registrations in April, and increased protocol revenue that helped increase available funds for the ENS decentralized autonomous organization (DAO).

Demand for 3- and 4-digit domain names surges

The sudden rise in ENS prices began on April 26, and the move coincided with a surge in demand for 3- and 4-digit ENS names. Secondary sales of ENS names on OpenSea peaked at 446 ETH last week, along with new registrations.

Some analysts believe that the demand for shorter ENS domains may be related to NFT investors, who prefer shorter tags.

Record-breaking Domain Name Registrations in April

A sudden surge in registrations at the end of April capped a record month for the program, with 162,978 new domain names registered, according to Dune Analytics.

ENS’ record-breaking month of growth also helped total registrations surpass the 1 million mark for the first time in history, with a total of 1,063,982 ENS names created by 393,894 unique participants at the time of writing.

Increase in contract revenue

Thanks to renewed interest in ENS domains, the protocol generated $7,838,962 in monthly revenue from registrations and renewals.

This brings the protocol’s total annual revenue to $42,767,760, which was ultimately redirected back to the project’s treasury for use by the ENS DAO.

According to ENS, the primary purpose of the registration fee is to “prevent the domain name space from being flooded with speculatively registered names.” A secondary role of the fee is to provide the ENS DAO with sufficient revenue to fund the continued development and improvement of ENS.

All ENS token holders can choose to participate in governance voting through the DAO.