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Ethereum Name Service price prediction: Surge in ENS domains


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The Ethereum Name Service logo and text
Investors can purchase customised wallet domains on the Ethereum Name Service – Photo: Praveen Nanu / Shutterstock

A typo when sending cryptocurrency to a wallet address is an easy mistake to make, especially as they are usually more than 20 characters long – but it has dire consequence.

Owners can lose their crypto for good if it goes to the wrong address – but Ethereum Name Service aims to allow users to create their own personalised wallet address to reduce the chances of this happening.

This clear utility has not always translated to positive price action in ENS, Ethereum Name Service’s governance token, however. 

ENS is currently showing signs of recovering from a long-term bearish trend as the platform surpassed a major milestone of two million registered domains. 

What is Ethereum Name Service (ENS)?

Wallets have proved to be an essential part of cryptocurrencies as a place to keep funds safe. But their addresses consist of long strings of characters, which easily lend themselves to irreversible mistakes by inattentive typists. 

Ethereum Name Service was designed to avoid this and provide an easy way of sharing wallet addresses. Just like a social media handle or a customised URL link, users can create their own personalised wallet address.

For example, someone could buy the wallet address Capital.ETH. Once registered with a wallet, investors can send or request funds by using this address.

Ethereum Name Service is now the most widely used blockchain domain standard. At the time of writing, it boasts more than two million addresses and almost 500,000 users.

ENS was originally created by the Ethereum (ETH) Foundation, but eventually launched as its own organisation. It is based in New Zealand, and Nick Johnson, who has worked at Google, is the lead developer.

The governance token

Managing the Ethereum Name Service is its own decentralised autonomous organisation (DAO). The ENS governance token is an essential part of this. Investors have a say over the future direction of the platform.

A proposal needs the support of 100,000 ENS. It can then be put to a vote where any ENS holder can support or deny it. To pass, a vote must have a two-thirds majority, with a minimum of 1% of all token holders taking part. 

Users will be given a chance to vote on funding and developing the platform. Holders will also have a say over the leadership of the Ethereum Name Service and how its mission is carried out.

ENS’s past performance

The ENS token launched in November 2021, with an airdrop taking place to mark its launch. Those who own an ENS wallet address were eligible to receive a portion of free tokens.

After going live on CoinMarketCap at $33.66 on 9 November, it rocketed to its all-time high of $85.89 two days later.

ENS price chart

Natural Gas

6.94 Price
+4.710% 1D Chg, %
Long position overnight fee -0.1782%
Short position overnight fee 0.1325%
Overnight fee time 21:00 (UTC)
Spread 0.006

Oil - Crude

85.82 Price
+3.610% 1D Chg, %
Long position overnight fee 0.0235%
Short position overnight fee -0.0429%
Overnight fee time 21:00 (UTC)
Spread 0.03

BTC/USD

20,348.40 Price
+3.650% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 66.00

US100

11,560.70 Price
+2.760% 1D Chg, %
Long position overnight fee -0.0137%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 1.5

Source: CoinMarketCap

The token came close to that price again later in the month. Two proposals were put to its community about transferring the funds from a multisignature wallet to the DAO and about launching another airdrop. 

Ethereum Name Service was also featured by Coinbase Japan on 22 November. By the end of the month, it had peaked at $83.54. 

ENS dropped from this high with the bear market and was fluctuating around $40. It picked up slightly in December when Vitalik Buterin, Ethereum’s co-founder, mentioned it at a live event.

However, by the beginning of January 2022, it had dropped below its launch price. Despite a brief rally on 1 May when it passed one million registered domains, the depreciating trend stuck with ENS. The cryptocurrency fell to its all-time low of $7.40 on 14 June.

In July, it started recovering from this low as Ethereum Name Service saw a 216% rise in registered domains early that month. This upward trend has continued and surpassed the two million mark, according to Dune Analytics.

Ethereum name service price prediction

At the time of writing, ENS was trading at $12.92, up 1% in the previous seven days, and the consensus from forecasters was that they expected ENS to sustain this rally. 

TechNewsLeader’s Ethereum Name Service price prediction for 2022 suggests it will reach a maximum price of $24.93 in a year. The site thinks it will grow past $100 in 2027 and rise to $350.77 in 2030.

Similarly, PricePrediction gives a maximum price of $35.06 for next year. Its Ethereum Name Service price prediction for 2025 averages out at $64.13. The price is predicted to reach $407.20 in 2030.

The ENS price prediction from AMB Crypto expects the cryptocurrency to pass $40 in 2025. Its Ethereum Name Service price prediction for 2030 suggests it could pass $150 and rise to $347.49 in 2033. 

On the other hand, WalletInvestor sees it as a “bad” investment and predicts it will fall below $1 by the end of next year

When considering ENS coin price predictions, it is important to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. Never trade with money that you cannot afford to lose.

FAQs

Is Ethereum Name Service a good investment?

Ethereum Name Service gives users personalised wallet addresses. These are easier to remember than the long string of characters usually used by wallets. In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether ENS is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.

Will Ethereum Name Service go up?

At the time of writing, a number of online forecasters, including TechNewsLeader and PricePrediction, have suggested ENS could see a steady rise. AMB Crypto even sees the cryptocurrency surpassing $300 in the next decade.

You have to keep in mind that cryptocurrencies can be extremely volatile and prices can go down just as easily as they can go up. Analysts and algorithm-based forecasters can and do get their predictions wrong. Keep in mind that past performance is no guarantee of future returns. Always do your own research. And never invest what you cannot afford to lose.

Should I invest in Ethereum Name Service?

The ENS token is a governance token and was designed for its users to have a say over the platform. Yet it has been stuck in a bearish trend since the beginning of 2022.

You will need to do your own research. Remember prices can go down as well as up. Keep in mind that past performance is no guarantee of future returns. And never invest what you cannot afford to lose. 

Further reading:

 

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