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 can have dire consequences.
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, however, always translated to positive price action for ENS, Ethereum Name Service’s governance token.
ENS is currently showing signs of recovering from a long-term bearish trend as the platform continues to hit all-time highs in the number of registered domains, and after token holders recently elected a treasury manager.
What is Ethereum Name Service (ENS)?
Wallets have proved to be an essential part of the cryptocurrency world, 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
The Ethereum Name Service is managed by 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 be passed, 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 2021, it rocketed to its all-time high of $85.89 two days later.
ENS price chart
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 multi-signature wallet to the DAO, and about launching another airdrop.
Ethereum Name Service was also featured by Coinbase Japan on 22 November 2021. By the end of the month, it had peaked at $83.54.
ENS dropped from this high as the bear market set in, and fluctuated 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, ENS 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 2022.
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.
ENS was rallying throughout October after a successful period for Ethereum Name Service, as monthly registrations and renewals hit another all-time high of 437,000 addresses, according to Dune. The surge in addresses followed support from Coinbase Wallet’s browser extension. This allowed users to replace their traditional long Coinbase wallet addresses with more personalised text.
As of 30 November 2022, ENS was trading at $13.81, up 6% in the previous seven days, but down 17% over the past month following the wider crypto crash.
Latest ENS news
The Ethereum Name Service’s DAO recently voted for a new manager of its treasury. ENS holders elected the Karpatkey decentralised finance (DeFi) management DAO to take charge of its funds.
The vote’s description read: “The Endowment’s goal is to ensure the long-term viability of ENS by ensuring it can meet its ongoing financial obligations even in the face of reduced ETH price and registration/renewal revenue.”
A total of 1.8 million votes were cast for the fund management organisation, with both ENS co-founder Alex Van de Sande and Karpatkey founder Lefteris Karapetsas adding to the voting pool.
Ethereum name service price predictions
At the time of writing on 30 November 2022, the consensus from forecasters was that they expected ENS to sustain its recent rally.
TechNewsLeader’s ethereum name service price prediction for 2023 suggested it could have reached a maximum price of $31.14 in a year. The site said ENS could climb past $100 in 2026 and rise to a maximum of $446.89 by 2030.
PricePrediction gave a maximum price of $16.20 for the beginning of 2023. Its ethereum name service price prediction for 2025 said ENS could average $45.15 by the end of the year. The price was predicted to reach $306.72 by December 2030.
The ENS price prediction from AMB Crypto expected the cryptocurrency to pass the $50 mark in 2026. Its ethereum name service price prediction for 2030 suggested it could surpass $150, and then rise to $342.34 by 2033.
On the other hand, Wallet Investor’s ENS crypto price prediction saw it as a “not so good” investment. However, it still expected gains and said it would have reached $14.12 in a year’s time.
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.
