The Ethereum Name Service (ENS) posted record lifetime domain registrations in 2022 amid a broader market frenzy that prompted some traders to treat domains as investments. ENS is a decentralized domain name protocol that runs on the Ethereum network. It provides users with an easy-to-read name like “ABC.eth” instead of a long, complex alphanumeric address for their crypto wallets, much like the Domain Name System replaces memorable names like “coindesk.com” for the Internet protocol number of website addresses.
Dune Analytics data shows that more than 630,000 unique wallets have created 2.82 million domain names, with 459,000 classified as “Top Names” Principal names are ENS addresses that resolve to a user’s crypto wallet and can be used as a proxy to look up information in blockchain explorers like Etherscan.
The data shows that September had the highest number of ENS registrations, with more than 430,000 unique domains, while December had the lowest number, with just 52,000 domains. However, the month of May saw the most significant number of new users buying popular and common names and selling them at a profit, with more than 64,000 investments, research firm Delphi Digital said in a note last July. Names like “Traders were trying to capitalize on the hype,” according to Delphi analysts.