The native token for the Ethereum Name Service (ENS), a distributed naming system based on the Ethereum blockchain, increased by over 30% within the last 24 hours. The price of the token moved from $14 to $18.58 with the market capitalization also climbing as high as $378 million.
Ethereum Name Service allows crypto users to replace traditional addresses with a simpler format with a .eth alias. ENS domain names can be used to receive transactions and are transferrable as non-fungible tokens (NFTs).
Why is ENS Pumping?
The recent price increase is directly attributable to an increase in the number of ENS domain registrations over the past few days. This is reflected in the increased gas fee being consumed by the primary ENS Registrar Controller.
According to Etherscan, ENS is currently the fourth highest gas guzzler. The ENS Registrar Controller has consumed 276 ETH (appr. $800,000) in the past 24 hours. Another record reveals that ENS have pulled in over $1.1 million in protocol fees over the same period.
The increased registration of ENS domain names is linked to the emergence of a new club culture among ENS domain holders. In the past few days, there has been a frenzy among investors to purchase ENS domain names within a so-called “10k club.”
The result is that all ENS domain names, for example, 1.eth, 2.eth, up to 9999.eth have now been completely sold out. Similar to most non-fungible tokens, investors are betting on the “10k club” eventually becoming a prominent member of the ENS community. The frenzy has even extended to investors purchasing domain names outside the newly prestigious club.
The public interest in ENS domains has apparently led to an increase in the price of ENS, the protocol’s governance token. ENS, which was originally airdropped to early adopters, is still trading below 750% of its all-time high. Time will tell if the recent trend continues and further drives $ENS from its low.
