The year 2022 was ultimately not a difficult one for all branches of the cryptocurrency industry. Ethereum Name Service (ENS) finished the year with over 2.2 million registered ENS domains. This increase is significant compared to previous years. The platform, which matches names to cryptographic addresses, saw over 80% of its total ENS domains registered in 2022.
Partnerships with cryptocurrency exchanges drive adoption
One of the factors that contributed to the success of Ethereum Name Service in 2022 is the integration of the service with major cryptocurrency exchanges. The most important is the giant Coinbase. In September 2022, Coinbase announced the integration of ENS. While ENS users can conventionally create ENS domains ending in .eth, this integration brings some changes. Through a simple Coinbase wallet browser extension, users can claim names – name.cb.id -. In addition to the security aspect of this innovation, it makes the use of the blockchain and its applications more user-friendly.
Data shows that September saw the highest number of ENS registrations created in 2022. There are 437,000 registered domains. Coinbase’s integration of ENS has therefore had a significant impact on new registrations. May 2022 was also an important month for ENS. Low gas rates on the Ethereum network contributed to a spike recordings of domains. eth.
In addition to this integration, ENS has also seen adoption from other industry participants. These are decentralized financial protocols and NFT markets.
Intuitive features drive adoption
Many other factors explain the growing popularity of ENS. In effect, ENS domains serve as Ethereum wallet addresses, cryptographic hashes, or website URLs. Users adopt ENS names for decentralized profiles, across decentralized apps and platforms.
Users can also use ENS as a non-fungible token (NFT). Thus, users can acquire ENS which they will resell to make a profit.
Despite a challenging year for the cryptocurrency market, ENS has seen strong adoption in 2022. As its use spreads, it will likely play a key role in the future of the blockchain.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its many uses and to transmit information related to this ecosystem with my pen.