This article aims to cover what has grown the most since the airdrop: the number of wallets that have created a domain for the first time, or the number of wallets that have added additional domains.
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 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.
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.
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.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 it 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. 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.
ENS Airdrop Tokens
The ENS team announced their governance token $ENS on November 8 and they airdropped 25% of it is 100 million total $ENS tokens to the ENS users. Here is the breakdown of how 100 million ENS tokens are distributed
- 25% airdrop to .ETH holders (>137k accounts)
- 25% to ENS contributors (>100 individuals and groups, plus hundreds of Discord users)
- 50% to the DAO community treasury
According to this governance, users who are or have been registrants of a .ETH second-level domain will be eligible to receive 25% of the total supply allocated for the $ENS airdrop. According to the distribution, the total time of past and future registrations for the address as of October 31st, 2021 is considered.
The future registration period is capped at 8 years, so even if someone registered a domain for 20 years or 50 years, the maximum of 8 years was taken into account in computing the number of ENS tokens they could claim. Additionally, those who set up the ETH account as a resolver will earn additional points, which result in more ENS tokens being distributed in the airdrop.
Before and After ENS Airdrop
The ENS Airdrop attracted a lot of attention as one of the biggest airdrops this year. This created a lot of media frenzy and social media chatter, resulting in increased volatility for ENS token prices on distributed exchanges.Let’s examine the registrations after and before ENS airdrop tokens were issued.
Here’s a graph that shows the change in ENS domain registrations during airdrops compared to before airdrops.After Nov 08,2021, we see a marked increase in domain registrations compared to before the airdrop. In both post and pre airdrop registrations, the Post Airdrop contributes the most (54.05%) to the total registrations. The maximum number of registrations of 7.12K was observed on November 10, 2021, and the minimum number of registrations of 309 on October 27, 2021.
An increasing trend can be observed in the registrations.Following the immediate release of airdrops, we are seeing a huge increase in domain registrations on Nov 9th and 10th 2021, almost three times more than before.
On the following graph you can see the number of unique wallets that created a domain for the first time, or those that added additional domains.Following the immediate release of airdrops, we are seeing a huge increase in domain registrations on Nov 9th and 10th 2021. During these two days, more people have registered for the first time. This could be due to the airdrops attracting more registrars to launch new domains.
The number of repeat registrations is higher than the number of first-time registrations.The maximum number of registrations was 7.12K on November 10, 2021 and the minimum number of registrations was 309 on October 27, 2021. There has been an increase in registrations. Registrations for November 22, 2021 and November 11, 2021 were lower than normal. Registrations for November 9, 2021 and August 25, 2021 were higher than normal. And also we can see more number of repeated registrations are increased after airdrop .
From the below graph we can see a forecast of ENS registrations for next 90 days . A total of 294.34K registrations were observed between June 25, 2021 and December 21, 2021. The maximum number of registrations was observed in November 10, 2021, and the minimum number was observed in October 27, 2021.The number of registrations has increased by 3.66 times from 806 in June 25 to 3.75K in December 21. This indicates a positive trend in the number of registrations.
The graph illustrates the increasing rate of domain registrations as data shows. And if we consider the past data, we find that registrations were increasing and that after airdrops, the rate of registrations increased even more.We may expect a rise in the number of domain registrations by taking into account all of these factors.
- In the above analysis, we see that the number of repeated registrations have increased after airdrop. And also , the number of repeat registrations is higher than the number of first-time registrations.
- The registrations are increasing following the immediate release of airdrops. Registrations are almost three times higher than before the release of airdrops on the 9th and 10th of November.
- Thus, the already existing user registrations after the airdrops increased to a greater extent than new registrations.