Introduction

In this analysis, we will delve into one of Ethereum's most popular projects - Ethereum Name Service (ENS), often referred to as ENS. While some users may not take NFTs seriously, almost all users appreciate having ENS names. These names enable users to use shorter versions of their Ethereum addresses, which can be difficult to remember. ENS names have witnessed significant sales volumes in recent years, and one factor that impacts their price is the number of characters they contain. Shorter names typically command higher prices than longer ones. This analysis will explore the following parameters of ENS names:
- MINTs
- Characters
- Fees
- Secondary Sales

Analyzed by Hess - Reading Time Almost 8 Min.

What are ENS Names?

ENS (Ethereum Name Service) names are a type of decentralized domain name system built on the Ethereum blockchain. They are human-readable names that can be used in place of long and complicated Ethereum addresses, which consist of a string of random characters.

With ENS, users can register a unique name (e.g. "he3am.eth") and associate it with their Ethereum address. This allows others to easily send them cryptocurrency or tokens without entering their long Ethereum address. ENS names can also host decentralized websites and other decentralized applications (dapps) on the Ethereum network.

ENS operates on a decentralized network of nodes, which means that any single entity does not control it. This makes it more secure and resistant to censorship than traditional domain name systems.

ENS Characters

This part relates to the number of characters in ENS names and their popularity among users. The analysis shows that ENS names with over 8 characters are the most popular among users, representing about 38.4% of the total minted ENS names. This is because longer names are generally cheaper than shorter ones. About 14.5% of the total minted ENS names had 6 characters.
On the other hand, 3-character names are more expensive than others, which is why only 1.97% of total minted ENS names had 3 characters. Most people chose their names as ENS names, making longer names more popular.

Mint Fees

This part is related to the minting fees of ENS names. According to the data, users spent 43.2K ETH, equivalent to 94M US dollars, in fees during the minting process. On average, users paid 34 US dollars in fees. Interestingly, the fees paid were unrelated to the number of characters in the ENS name. Users who minted ENS names with more than 8 characters spent the most on fees, with 36M US dollars. However, ENS names with only 3 characters had the highest average paid fees, nearly 40 US dollars.

A majority of the ENS name users, around 350,000, have spent between 10 to 100 US dollars purchasing these names. The second largest group of users are likely those who have minted only one ENS name and have spent less than 10 US dollars. It's important to note that the spent volume mentioned is based on the ETH price over time, not the current price.

Interestingly, the data reveals that 11 unique wallets spent an impressive 100K-1M US dollars each on minting ENS names. Additionally, 532 wallets spent between 10K-100K each on ENS names. This highlights the significant investment some users have made in acquiring ENS names, further emphasizing the popularity and importance of the Ethereum Name Service project.

Secondary Sales

Users are buying and selling ENS names on secondary marketplaces, with most sales occurring on Opensea. The total number of sales before May 2022 was below 2K. Still, after that month, the total number of sales significantly increased to 47K, with the highest occurring between April 1 and October 1. As of May 1, 2020, there were 239K recorded sales of ENS names, with 64K unique buyers and 37K unique sellers.
Interestingly, despite the active secondary market for ENS names, the data suggests that users prefer to keep their names rather than sell them. This is evident because the total number of mints significantly outweighs the total sales.
In terms of sales volume, the total sales since May 2020 were worth 151M US dollars, with the highest sales volume occurring between April 1 and September 1, 2022.

Platforms facilitating the sale of ENS names have earned 3.2M US dollars in revenue from these activities. The majority of this revenue, or "huge shares," was earned by the Opensea marketplace.

In contrast, the creators of ENS names have earned 254K US dollars from the sale of their names over the last three years.

Method

Mints: The crosschain.core.ez_ens Flipside tables provided access to all mint activities. The table includes information such as the owner, ENS names, and the cost of the mints.
Characters: To analyze the price and mints based on the number of characters in ENS names, I used the len function to count the characters.
Fees: I combined the mint transactions hash with the Ethereum transactions and price tables to calculate the fees in US dollars based on the number of characters in ENS names.
Secondary Sales: I used Ethereum NFTs sales data to extract all ENS sales activities.

IMPORTANT NOTE: Due to a problem with displaying LOG charts on the Flipsde New App, I preferred to use the old dashboard, as some of the charts required a Log preview.

Full Analysis

ENS Mints

There have been a total of 2.83 million ENS names minted by 645,000 unique users since February 2020. From February 2020 to October 2021, the monthly mints remained below 25,000. However, starting in October 2021, there was a significant increase in the monthly number of mints, with the number of monthly mints and users increasing 4-5 times.
The highest number of mints and users occurred between May 1 and October 1, 2022, with September 1 seeing the highest number of mints at 463,000, with 62,000 unique wallets. However, the monthly mints decreased recently and reached below 50,000 ENS names and 22,000 unique wallets.
Overall, the chart below shows that ENS names' popularity has risen in recent years, with a significant surge in usage starting in October 2021. The recent decrease in monthly mints and unique wallets may indicate a temporary slowdown in growth. However, it remains to be seen whether this trend will continue or if there will be another surge in usage in the future.

Breakdown and Tops

Conclusion

We can conclude that ENS names have become increasingly popular over the last three years, with many users minting their own ENS names. The most popular ENS names were those with more than 8 characters, likely due to their lower cost. However, shorter ENS names, particularly those with 3 characters, were more expensive and generated a higher average fee.
Users spent significant money on minting ENS names, with some spending as much as 1 million US dollars on the platform. Users also spent considerable money on fees associated with minting ENS names.
The secondary market for ENS names has also grown significantly, with many sales occurring on the Opensea marketplace. The total sales volume for ENS names was significant, with many unique buyers and sellers.
Overall, the data suggest that ENS names have become a popular and valuable asset in the cryptocurrency ecosystem, with users investing significant resources in acquiring and trading them.

THANK YOU FOR READING!

ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

Twitter: 0xhess

Discord: hess#0890

Publish Date: 2023/03/09

The total daily mint volume of ENS names has increased over time, along with the number of mints and users. However, the average price of ENS names was higher in 2021 than in 2022. In 2021, the average spent per user was 0.1 ETH, while in 2022, it decreased to 0.01 ETH, which is 10 times cheaper than the previous year.
The highest mint volume occurred between April 1 and October 1, 2022, with the total monthly volume increasing to 4,832 ETH. Users have spent 35,000 ETH on minting ENS names, worth around 54 million US dollars based on the current ETH price. On average, users have minted 4 ENS names each.
Overall, the data indicate that while the average price of ENS names has decreased over time, the total volume of mints has risen, with the highest in 2022. The significant amount users spend on minting ENS names highlights the importance and popularity of this project within the Ethereum community.

The below charts offered insights into the top users who have minted ENS names over the past three years. The highest number of ENS names purchased by a single user is 15,000, with the second highest being 10,000 ENS names - a significant difference between the top two users.
Furthermore, the data highlights the most expensive ENS names based on their highest price. The ENS name 'PWC.eth' sold for a remarkable 69 ETH, making it the most expensive name. Following closely behind, 'Blackjack' sold for 48 ETH, making it the second most expensive ENS name. The list of top minters and most expensive ENS names can be found in the charts provided.

Although 3 character names account for a relatively small percentage of total minted ENS names (1.97%), they generated a significant volume of 9K ETH for the ENS platform. This is interesting because the most popular ENS names with over 8 characters which were 42% of total minted ENS names, had a similar volume to 3 character names. In contrast, ENS names with 5, 6, 7, and 8 characters generated the lowest volume.

There has been a decrease in the average price of ENS names over time. Specifically, the average price of 3 character names was around 3 ETH in 2020 but has decreased to 0.3 in recent months.
Interestingly, 4 character names had the highest mint price after 3 characters over the last three years and were significantly more expensive than other ENS names. Additionally, there was an increase in the average price of ENS names after October 2022 compared to previous months. These findings suggest that ENS names fluctuate significantly over time, with specific character lengths being more expensive than others.

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