ENS turns difficult-to-read data strings into simple website-style addresses that are easier to remember and use
According to the Ethereum Name Service, over 80% (2.2. million) of the total ENS domains created since the project’s inception were registered in 2022.
As of Jan. 2, there were 2.82 million names registered on the service that turns machine-readable numbers like into human-readable alternatives. These are attributed to around 630,340 owners of ENS domains.
Despite unfavourable crypto market conditions, ENS managed to make a number of partnerships with major exchange operators like Coinbase in 2022. That factor significantly contributed to the popularity of the service.
Additionally, users are increasingly adopting ENS names for DeFi applications and platforms. ENS domains may serve as ETH wallet addresses, cryptographic hashes or website URLs and are effective for use with nonfungible tokens (NFTs). It can also be used to represent transactions IDs and metadata, commonly found in the cryptocurrency world.
Users of the ENS service own their usernames. Besides, they can store an avatar and other profile data, and use it across services.
ENS is an Ethereum-based project founded by Alex Van de Sande and Nick Johnson from the Ethereum Foundation. It has been operating since 2017, but the main growth was enabled only when major crypto platforms integrated the service.
Moreover, Ethereum Name Service launched a governance token $ENS in late 2021, transitioning to a decentralized autonomous organization (DAO). Due to a large rise in the token’s price, the project has attracted a lot of interest.
The largest number of ENS domain registrations (437,000) took place last year. The data also suggests that lower gas fees on the Ethereum network played a role in a surge of .eth domain registrations.
While default Ethereum Name Service domains end with .eth, Coinbase’s integration of the service creates “name.cb.id” usernames with Coinbase Wallet’s browser extension.