Ethereum Name Service collects $235,000 in fees in 24 hours; ENS price still expected to decline
- Ethereum Name Service, a domain name service provider, collected nearly a quarter of a million dollars on August 13 in fees, marking the highest in a single day in 11 months.
- The adoption of the service has been slow, noting only 2.6 million users in six years since its launch and monthly registrations declining consistently.
- The 4.41 million ENS token unlock this month is expected to drive the price down to $8.321.
Ethereum Name Service price has been treading beneath key resistance levels for about four months. While the cryptocurrency is following the broader market cues despite the rut, the protocol seems to be doing better than ever.
Ethereum Name Service sees a spike in interest
Ethereum Name Service on August 13 recorded one of the highest fees collected on the platform since September 11 last year, marking an 11-month high. Within 24 hours, the platform noted $235,000 in fees even while the price of the native token did not make any significant move.
ENS fees collected
ENS is a domain name service provider that maps a Web3 URL ending in “.eth“ to an Ethereum address, other cryptocurrency addresses, content hashes, and metadata. The naming service had observed significant demand this time last year when, within the month of August, more than 437k registrations were recorded.
Since then, the platform has been losing traction, with the month of July 2023 noting just 31k registrations. The discouraging market conditions can be attributed as one of the biggest reasons behind the drawdown in registrations. Furthermore, considered to be cosmetic, the naming service does rank high up in the list of necessary crypto services, as a result of which, in the six years since its launch, only 2.6 million registrations have been recorded.
ENS platform registrations
The native token ENS is still dependent on the broader market cues to find a direction, evident that despite August 13 recording nearly a quarter million in fees, the altcoin barely moved. In fact, considering the price indicators and other factors, the cryptocurrency seems much more vulnerable to a further decline.
ENS/USD 1-day chart
Stuck under the 50-, 100- and 200-day Exponential Moving Averages, the ENS price is likely to continue sliding and hit a low of $8.321 and potentially even decline to $8.026. However, if the altcoin observes bullish interest, ENS could end up at $10.476, provided it manages to breach $10.210.
Read more - MATIC, ENS, ARB look ready to plummet as traders lose interest on CEX tokens
Like this article? Help us with some feedback by answering this survey:
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
