Amount Spent On ENS Temporary Premiums

This article aims to show: How much money is being spent on ENS premiums and what percentage of names are being registered with a premium? How much is the average premium paid on a name?


ENS is a service that manages wallet addresses, hashes, and other machine-readable identifiers, transforming difficult-to-read strings into easily readable addresses, similar to the Domain Name System (DNS) used by web servers. Each name ends in .eth and has the ability to be associated with multiple cryptocurrency addresses, hash values, and other information.Ethereum’s Name Service (ENS) allows anyone to create simple, website-style addresses that are easier to remember and use, thereby improving blockchain’s ease of use and accessibility.

About : ENS (Ethereum Name Service)

A blockchain-based platform called Ethereum Name Service (ENS) was launched on May 4, 2017. It enables users to view long Ethereum addresses in a simplified text-based format to make them easier to share, use, and remember. ENS uses DNS, the Domain Name System (DNS), which acts as the internet’s phonebook. DNS takes difficult-to-remember IP numbers and assigns them to URLs like In effect, ENS is the DNS of the Ethereum blockchain.

If you’re interested in securing an Ethereum domain name, you’ll be able to check availability and rent it yearly. ENS initially offered popular six-, five-, four-, and three-letter domain names via Vickrey auctions. With the new service, you can rent names by the year without having to attend an auction. Prices are dependent on the length of time you want to rent the name. 

Use Of ENS

ENS makes it easy to remember long numbers by converting them into easy-to-remember words.As a result, there is less chance for errors to occur. If you have ever been confused with multiple addresses when sending cryptocurrencies, you will understand the need for ENS. A ENS domain is an NFT, so it can be treated like an NFT, which means you can buy and sell it, transfer it to another account, or use it as collateral for projects that provide the service.

It does not always have to be a wallet address. It could be linked to a smart contract, transaction, or metadata. An ENS domain owner can also create subdomains.

How much does an ENS domain cost?

In an auction, the price of an ENS domain name is based on its popularity. Rental costs are more likely to be influenced by the price of an auction.For Example ,short, three-letter words were typically the most expensive.

After you purchase an ENS domain, you must pay annual renewal costs in ETH. The fees will be denoted in dollars, but will be converted using Chainlink’s ETH/USD oracle.If you have five characters or more in your name, the renewal cost is $5 annually. The cost increases the fewer characters you have.

How to Renew Your ENS Domain?

We can have two options here. One option is before the expiration of the domain you directly go to the manager and renew the domain for the next year or for next couple of years. In this case the yearly renewal fee goes up to $5/year for more than five letter domains. Fees vary according to the length of the name: .ETH names with five characters or more cost $5, four-character names cost $160, and three-character names cost $640.

The second option is When a name expires? When a .ETH name expires, it enters a grace period of 90 days. During this 90-day period, the original owner of the name can reclaim the name for themselves. As soon as the ENS name becomes available for re-registration, it receives a temporary premium of $2000 in addition to the usual price, which depreciates to zero over a 28-day period.

Here in this article, we will discuss how much money is spent on ENS premiums, as well as what is the average price paid per month on ENS names by domain length and their percentages.

What is ENS Premiums ?

Below are the graphs which show how much was spent on ENS Premiums and how much averaged out on a daily basis. According to the decaying price premium , Generally, the premium beyond the regular registration price starts at $ 2,000 USD as soon as the name becomes available and declines linearly to $ 0 over the course of 28 days ($ 71 a day). So after 28 days, the cost to register is the normal price (e.g., $ 5 / year for most names).

In essence, $2000 is a reasonable amount for spending on ENS, which is why most domain owners wait for the end of the 28 day period to renew their domains.Together with the 28-day period, people will have plenty of time to decide whether the price is worth buying the name at.During the first 28 days after the name is released, you can register your desired name without any premium being added to the registration price.

If we have a look at the graph the amount on ENS premiums spent is more on August 2021 and also it is gradually increased from August onwards it might be because of the yearly renewals of domains which were generated on May 2020 will comes again for renewal on May 2021 and after that some might enter into the ENS premiums .

It can be attributed to the yearly renewal of domains generated in May 2020 and after May 2020 which are due again in May 2021 that the amount spent on ENS premiums is higher on August 2021, and it is also increasing from August onwards.After that, some of them could enter into the ENS premiums. Then many premium renewals took place from August 2021 onwards as many premium renewals will fall in August. Clearly, there has been an increase in premiums paid starting in August 2021.

Observing the Monthly Average spent on ENS Premium graph, we can see that the Premiums amount increased gradually after the month of May 2021. In addition, there is a significant rise in the average premiums paid amount since August 2021.

Premium Registration of ENS Names Is Based On Their Length

As we can see in the graph below, more registrations have occurred with domains with five or more characters. If we look at the data after Aug 2021, we can see a lot of Premiums paid, as well as a lot of transactions that have happened with 1-3 Characters domains. Among the three Ens Name Lengths, 1-3 Characters Domain contributes the most (46.2% to the total Registrations).

The lowest number of registrations is 1,094 (4 Character Domain) and the highest number is 2,331 (1-3 Character Domain).The maximum number of registrations was observed in November 2021, and the minimum number was observed in July 2021. The number of registrations in November 2021 was higher than normal. There was a significant increase in registrations during November 2021. The key contributor was the 1 3 Characters Domain. In August 2021, registrations grew significantly. The key driver was the 5+ Characters Domain.

Total Premiums Paid was the lowest (4 Characters Domain) and the highest (5+ Characters Domain).

Domains with an ENS Name Length of 5+ Characters account for the largest share of total Premiums Paid in the 3 ENS Name Lengths.A trend of increasing ENS premiums can be observed. ENS Name 5+ Characters Domain is the highest contributor out of ENS Length domains.

Among the three ENS Name Length 1-3 Characters Domains, ENS Name Length 1-3 Characters domain contributes the most to registrations (46.2%).The maximum number of registrations occurred on November 8, 2021, and the minimum number occurred on April 19, 2021

Premium-Registered Names As a Percentage

There were 2.52 million premiums paid between January 4, 2021 and December 13, 2021.Among the 3 ENS Name Length 5+ Characters Domains, the 5+ Characters Domain is the highest contributor (61.19%) to the Total Premiums Paid. Premiums paid for the lowest domain are 393.76K (4 Characters) and the highest domain is 1.54M (5+ Characters), respectively. Premiums Paid shows an increasing trend. Total Premiums Paid in August 9, 2021 is lower than normal and higher than normal in August 2, 2021 and November 8, 2021.


From the above analysis ,

  • We can see there has been an increase in premiums paid starting in August 2021. If ENS was launched on May 2017, we expect the yearly renewal period of ENS will be May 2021. And we also expect that Premium payments will be more common after August 2021.
  • And if we look at the premiums paid amount by ENS name lengthwise ,Domains with an ENS Name Length of 5+ Characters account for the largest share of total Premiums Paid in the 3 ENS Name Lengths.A trend of increasing ENS premiums can be observed. ENS Name 5+ Characters Domain is the highest contributor out of 3 ENS Length domains. Eventhough therewe can see a highest number of registrations were happened by (1-3 Character Domain).
  • According to the ENS name length Percentage of Premiums Paid , the domains with 5+ characters have the highest contribution to the total premiums paid.

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