Ethereum Name Service (ENS) Becomes Top Weekly Gainer, Retests Resistance Levels

Ethereum Name Service (ENS) traded above its one-year peak and turned into one of the strongest gainers for the past week. After locking in $26, ENS returned among the top 100 coins and tokens. Now, the token is preparing to retest resistance levels above $27. 

ENS is the token that allows Ethereum addresses to have easy-to-understand names, which is becoming increasingly popular. Despite these uses, ENS still has a market cap under $1 billion and has been drifting sideways for most of 2023. 

In 2024, ENS broke out along with the general bull market, reaching a 12-month peak above $27. Soon after that, ENT retreated to $25.90, with expectations of trying another upward move. 

ENS trading expanded by 210%, reaching $365M in 24 hours. Trading is especially active on Binance, making up 24% of all volumes. The next resistance level is expected by traders between $27.30-$30.40, with the potential to break out. Extreme predictions for the current ENS rally are for a hike to $80.

ENS stepped back for a brief spell, but buying continues, and the project is considered undervalued overall. 

The ENS rally may continue while the entire Ethereum ecosystem of tokens enjoys additional attention.

Read also Unstoppable Domains expands Web3 offerings with Ethereum Name Service support

ENS to Get Boost After the Web3 Narrative Returns

Owning a unique name is also part of the Web3 narrative. The ENS community is the most successful example of usable ownership, active trading, and account renewal. 

ENS links to the account abstraction trend, which would allow more intuitive, agile access to multiple chains. As late as April, someone on the Ethereum blockchain also registered the account-abstraction.eth name, preparing for the trend to pick up. 

ENS Rally Underscores the Success of Ethereum

ENS has always been supported by the Ethereum community. The latest rally comes after ETH market prices moved closer to $4,000. 

The daily active users on the Ethereum network also surpassed 500K in 24 hours, slightly higher than the usual baseline. Ethereum remains the most widely used layer for decentralized finance, despite the various scaling solutions. 

ENS is also important for crypto influencers as a way to have a recognized brand identity. ENS names are also integrated into most types of wallets.

Will ENS Grow to 1M Unique Address Names?

The Ethereum Name Service has been copied to the most widely used L1 networks and is part of the general Web3 package offered by most projects. 

As of May 2024, 846,978 unique names were set, potentially mapping unique users. More than 2M actual names were created, all showing signs of activity. 

ENS is more than a gimmick or a personal brand – all name owners also use their identity as a voting tool. Additionally, ENS is getting constant earnings inflows from new address creation, as well as name renewal.

Also read: BlackRock’s Spot Ethereum ETF Has Been Listed On The DTCC

For ENS, peak revenues from new registrations happened in 2021 and 2022. But during the current bull market, renewals and new accounts account for an equal share of revenues.

ENS identity owners are also the most active on Ethereum-compatible blockchains, most often Optimism, Arbitrum, Metis, and Polygon.

Ethereum Names Keep Up NFT Trading

ENS identities are also an engine that keeps Web3 and NFT trades going. Both randomly generated and unique, high-profile names are on sale through OpenSea. Some of the top names may never sell, but will keep their visibility with an extremely high asking price. 

In the past week, one high-profile ENS NFT also changed hands, among other top NFT resales. 

Other NFT collections have been created for ENS holders, though quality and value may vary. The more common sales are happening at a much lower price. 

Offers for rare ENS or unique names continue to drive regular daily trading, along with rock-bottom offers at $0.0008 ETH for the most common names. 

Read also Google Integrates Ethereum Name Service, Simplifying Crypto Transactions

Cryptopolitan reporting by Hristina Vasileva