ENS registration is cheap, but gas is not. Do more people register domains when gas is lower? Was there a spike in registrations when during recent ETH price dips?
ENS is an open-source, distributed, and community-owned naming system residing in the Ethereum blockchain. It was created by Nick Johnson and Alex Van de Sande, who were developers at the Ethereum Foundation in early 2017.This makes it easier to share, use, and remember addresses and other data.
A person can check the availability of an Ethereum domain name, and it can be rented or bought periodically. Popular names, however, were initially auctioned off. The highest bidder who won the domain was able to attach addresses to it, create sub-domains, and loan or sell the domain.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. 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.
Although creating an ENS domain name is relatively inexpensive when taken as a 5 or 5 + character name, we must pay a gas fee for this process.However, sometimes we may be required to pay a higher gas fee than the ENS registration fee. I wonder what happened to the number of registrations when the gas fees changed recently. And if the changes of gas fees have an impact on registration numbers.
Below is a graph showing the number of registrations and gas fees on a daily basis over the past year.A maximum Gas Fee of 257.23 was recorded in May 11, 2021, and a minimum Gas Fee of 4.44 was recorded on June 26, 2021.A minimum of 87 registrations was observed on May 12, 2021. This means we can see a very low registration rate during periods of high gas fees.
Fees for total gas in February 21, 2021 and December 2, 2021 are lower than usual, and in May 10, 2021 and May 11, 2021, they are higher than normal.Later in Jun 2021 we can see a number of registrations were increased due to the reduction of gas fees .
On Nov 9,2021 there can be seen a large increase in registrations despite there being a high gas fee that day. That is because the ENS Token airdrop claim started on Nov 8,2021. In other words, we can assume despite the high gas price in Nov 9,2021 there was an increase in registrations as well. In Dec 2021 the gas price was reduced, and we can also see that a great deal of registrations happen in Dec 2021..
On the given graph we can see the number of registrations was increasing from Nov 2021 onwards. If we compare the GWEI to the number of registrations, the number of registrations increases if the GWEI is less.
In May 2021, we noticed an ethereum price that was very high. During that time we also found that there were less ENS registrations. In addition, we noticed that there was an increase in registrations after a certain period, which is why we see Ethereum prices were down during that period. In Nov 2021, we see the etherum prices are at their peak and the number of registrations is also increased despite the price increase. We can assume that all of this happened as a result of the ENS token launch airdrop claim on Nov 8,2021.
The following graph provides clear insight into what happens on the number of registrations, based on the Ethereum prices are changed and gas fees are changed. In November of 2021, we can see a significant increase in registrations, even though the gas fee and ethereum prices went up.
Observations
According to the above analysis, if Ethereum’s price and gas fees were increased, we could also expect a substantial increase in registration numbers. Nevertheless, once the ENS token airdrop claim on Nov9,2021 was started, we saw that the number of registrations increased even though the Ethereum price and also the gas fee were higher. The maximum number of registrations happened on Nov10,2021.