Overview of ENS Project
Business Model
Launched on Ethereum in May 2017, Ethereum Name Service (ENS) maps customizable .eth domains to wallet addresses (e.g., vitalik.eth replaces complex addresses for transfers). Each ENS domain is an ERC721 NFT tradable on platforms like OpenSea.
Pricing Structure
- 5-character domains: $5/year
- 4-character domains: $160/year
- 3-character domains: $640/year
Performance Metrics
- Total registrations: 1.12 million
- Integrated with 500+ wallets/protocols, serving 400K+ users
- Historical revenue: $56.7M (Ranked #15 among crypto projects)
- Revenue growth: 8x surge post-airdrop announcement, sustaining $180K+/month for 11 consecutive months
- Primary income source: New registrations (10x renewal revenue)
Team & Ecosystem
Core Team
Founded by ex-Google engineer Nick Johnson (2016), ENS operates under Ethereum Foundation’s support. Team of 16 includes:
- 1 CEO, 1 CTO
- 7 technical staff
- Community/Advisory roles
Partnerships
- 500+ integrated projects (e.g., MetaMask, Binance)
- Notable adopters: Crypto influencers, PUMA, and VC firms using
.ethas Web3 identity tags
ENS Domain Trading Insights
Macro Trends
- 183,680 domains listed on OpenSea (~13% of total supply)
- 70% users hold 1 domain; 55% held >3 months
- Low liquidity: 5.74% turnover rate, averaging 344 daily trades
Micro Analysis (April–July 2022)
Dataset: 94,883 valid transactions
Price Segments
- < $0.1: 66.94% of trades
- $1–$5: 7.5% of trades (23% of total volume)
- > $5: 0.66% of trades (30% of total volume)
👉 Explore high-value ENS domains
Domain Categories
| Type | Avg Price | Volume Share | Notes |
|----------------|--------------|------------------|--------------------------------|
| 3-digit | $29.20 | 29% | Scarcity drives premium pricing|
| 4-digit | $3.10 | 38% | Best liquidity |
| 5-digit | $0.85 | 33% | Bulk of registrations |
Other Types (Letters/Alphanumeric): Lower demand, higher investment risk.
Risks & Future Outlook
Challenges
- ETH dependency: ENS growth tied to Ethereum’s competitiveness
- Token unlock: 25% of ENS tokens to unlock over 3.5 years (potential sell pressure)
- Domain speculation: Short-term price volatility
Opportunities
- Web3 DID integration: ENS as foundational identity layer
- Monopoly advantage: Sole
.ethdistributor on Ethereum
FAQ
Q1: Why invest in 4-digit ENS domains?
A1: Optimal balance of liquidity and affordability, with higher resale potential.
Q2: How does ENS revenue sustain long-term?
A2: 91% of domains are 5+ characters ($5/year), ensuring steady income from mass adoption.
Q3: Are non-digit domains worth buying?
A3: Niche demand; prioritize memorable or brandable names for ROI.