Learn about ENS, the most successful non-financial Ethereum application to date

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Learn about ENS, the most successful non-financial Ethereum application to date

BeepCrypto

2022-08-08 10:00

本文约4451字，阅读全文需要约18分钟

Earlier Vitalik said in an interview: "Ethereum domain name service ENS is by far the most successful non-financial Ethereum application, which can basically be compared to a decentralized phone book."

Original Author: Umer

On October 9, 2021, the Ethereum domain name paradigm.eth was purchased by an unknown wallet at a high price of 420ETH. Buyers of Domain Names.

Recently, the price of ENS has fluctuated. The reason is that users rush to register three-digit and four-digit ENS domain names, and even domain names with many Chinese characters appear. We have noticed that on the NFT trading platform OpenSea, there are many well-known high-priced domain names. For example, the price of zhifubao.eth, which was registered as early as 2017, reached 200ETH, which is about 315,000 US dollars; The price of the .eth domain name even reached 1 million USDC, which is about RMB 6.75 million.

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What is ENS?

From Vitalik's description, we can simply compare ENS to a decentralized phone book, except that the phone is connected to the cryptocurrency wallet, which can be used to receive and pay cryptocurrency.

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What is the role of ENS?

At present, the biggest role of ENS is to replace the complex Ethereum addresses with lengthy numbers and letters, and replace them with simple, friendly, and custom addresses. Therefore, in wallets that support ENS, users can directly use ENS domain names to bind various cryptocurrency addresses, without having to copy and paste long strings of addresses.

This basic function seems to have little effect, but it actually solves a big problem in reality. As early as 2018, a user mistakenly sent his 1493 ETH to the founding address of Ethereum. In recent years, with the popularity of NFT, incidents of user property loss due to wrong addresses have occurred from time to time. ENS solves this problem very well, improving transaction convenience and bringing security at the same time.

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ENS history

ENS was launched on May 4, 2017 by Alex Van de Sande and Nick Johnson of the Ethereum Foundation. This project allows users to display long Ethereum public addresses in a simplified text-based manner.

In November 2021, ENS released its own governance token and conducted an airdrop. At the same time, ENS has established a DAO to operate and manage it. Token holders will participate in the management of assets, as well as vote on DAO proposals and make decisions on the use of organizational funds.

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Data source: CoinGecko, statistical deadline is July 22, 2022

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ENS Market Overview

ENS total turnover

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Data source: NFTGO, the statistical deadline is July 22, 2022

Number of ENS registrations

From the perspective of the number of transactions, since 2019, 85% of the transactions of ENS have occurred this year, and the most active months of this year are from May to July.

According to Google data studio data, since the beginning of 2021, the number of ENS domain name registrations has approached 1.13 million, of which the number of registrations in a single month in May 2022 was as high as 365,000, with an average of more than 10,000 ENS domain names being registered every day.

Number of ENS renewals

Google data studio data shows that from the beginning of 2021 to the present, the number of renewals of ENS domain names is about 75,000. Looking at the whole year, the average monthly ENS domain name renewal this year is significantly higher than last year's average, especially the average renewal volume in the last three months exceeded 14,000.

ENS expiry quantity

According to data from Dune Analytics, over 1.76 million ENS domain names have been created so far. The number of expired ENS domain names in the first half of 2022 is generally low, but the number of expired domain name services will increase significantly in the second half of 2022, and the number of expired ENS domain name services will reach 17,604 in September.

ENS Registration/Renewal Income

Although the ENS agreement earns income through domain name registration and domain name renewal, Dune Analytics data shows that up to now, most of the income of the ENS agreement comes from domain name registration, of which the income from domain name registration is 27215ETH (84.2% of the total income), domain name The income from the renewal is 5102ETH (accounting for 15.8% of the total income).

ENS holds address

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ENS domain name price and price distribution

ENS domain price

The cost of purchasing a domain name is composed of registration fee and Gas. Some users simply increase the registration time in order to avoid paying Gas every year. The gas fee depends on the complexity of the transaction and how fast the user wants the transaction to settle, and the registration fee depends on the length of the domain name. Specifically:

Domain names longer than 5 characters: 0.003 ETH per year (around $5)

4-character domain names: 0.098 ETH per year (around $150)

3-character domain names: 0.391 ETH per year (around $600)

ENS price influencing factors and valuation analysis

In the trading market, we compared the impact of length and expiration time on prices, and made a scatter diagram of the distribution of transaction prices of ENS domain names with a length of 3 characters to 10 characters with expiration time (Opensea data).

In addition, compared with the transaction prices of ENS domain names with a length of more than 5 characters, the transaction prices of ENS domain names with a length of 3 characters and 4 characters are evenly distributed. By observing the transaction price distribution of ENS domain names with different lengths, we further verified that the transaction prices of ENS domain names with a length of 3 characters and 4 characters are evenly distributed in the range of 0-10ETH, while the ENS domain names with a length of more than 5 characters Domain name transaction prices are mainly concentrated in the range of 0-5ETH.

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Data source: ThePASS, top 20 high-priced ENS

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Data source: ThePASS, top 10 Chinese high-priced ENS

Regarding the issue of ENS valuation and pricing, in fact, not only ENS, but the entire NFT valuation is a big difficulty. ENS is more complicated or disorderly in comparison. We apply the valuation model of ThePASS to conduct 47 Group division, the original features of ENS include domain name length, attributes (numbers, letters, emoticons), etc. We have divided 45 groups according to the price gradient, and added two additional abnormal groups, such as paradise.eth, starbucks.eth These are from the original attributes It seems that it is a low-priced domain name. Because of cultural or other objective factors, the price is inverted. We will automatically identify the domain name whose price is out of the original echelon, so as to put an abnormal label on it and enter the abnormal group, but the price of the abnormal group will also have different price gradients. distinguish.

Except for the abnormal group, the current highest valuation is the three-digit + single digit + digital domain name (eg.006), which is valued at 32 ETH, and the remaining three-digit domain names are estimated to be between 23 and 28. There is a clear difference between a four-digit domain name and a three-digit domain name, and its price is between 1 and 9 ETH.

1. The first feature ycg in the value column indicates an abnormally high group, the larger the number after ycg, the higher the valuation;

2. The third characteristic of the value column, if it is '-', it means that there is no such characteristic

Generally speaking, only when the length is between 3 and 4, no matter whether its attribute is a number or an expression, will there be a big gap with the price of the entire series.

Careful users will find that some features that seem to be more rare, such as the "three-digit" 3-digit (eg. ) is slightly more expensive, which involves transaction frequency and turnover rate issues. Domain names with higher transaction frequency will be more sensitive to price changes in the market. The price of universal tools driven by machine algorithms is based on the data itself as much as possible, without human factors. Therefore, judging from the data, the three-digit number is indeed slightly more expensive than the two-digit three-digit number.

The above is the discussion and research of the BeepCrypto research team based on ENS. If you prefer video explanations, please check:

Youtube: https://www.youtube.com/channel/UCROtJfUztH4_uGx7qtImDIg

Weibo: https://weibo.com/u/6128064102

Twitter：https://twitter.com/beep_crypto

Welcome more interested partners to join the Beep research team!

Utilities:

DAO Treasury and NFT Asset Valuation Tool: www.thepass.to

Data platform: https://dune.com

References

ENS Dashbaord：https://datastudio.google.com/u/0/reporting/8785928a-71d5-4b17-9fea-fe1c937b064f/page/RoKgC

References

https://twitter.com/Brommhill/status/1521629343511891968?s=20&t=10wATNRP7JRwm05syMDmdg