Ethereum

ENS Market Cap Reached $1 Billion A Few Days After The Airdrop


The ENS market cap reached $1 billion only a few days after the ENS airdrop and kickstarting the DAO as we read in our Ethereum news previously. ENS is a Web 3 equivalent to the domain name system and formed a DAO that boosted the interest in the protocol and the new governance token on the market.

Uniswap surprised the users with an airdrop last September as well where 400 UNI tokens were handed out. As those 400 tokens became worth thousands of dollars, many new traders joined in because they didn’t want to miss out on the next best thing. Fast forward to this week and we can see the Ethereum Name Service launching an airdrop as well. ENS airdropped its own governance token and reached a market cap of $586 million the same day.

name registrations
New .eth name registrations. Image Dune Analytics

Yesterday, the ENS market cap reached $1 billion, and this is only one positive metric for the service. The individual ENS tokens are selling for under $60 but the asset is still in its early period of price discovery. The Ethereum Name Service is a web 3 version of the domain name system which is a method for cataloging the internet and making it simpler for the users. Unlike the DNS, ENS is censorship resistant thanks to its .eth domains which can be used as crypto addresses for sending and receiving ETH-based assets.

Anyone that had an ENS name by October 31 can receive the ENS governance tokens until May 4, 2022, and can also become a member of the DAO. They can then use the tokens to delegate power to another user that will vote on their behalf for all issues related to pricing, treasury, protocols, and more. Director of Operations Brantly Millegan said:

“In the last year or two, we’ve seen [an] explosion in innovation and experimentation with DAOs. ENS isn’t a DAO-experiment project, it’s a naming project, and we thought that DAOs had matured enough that we could trust one with key parameters of the ENS protocol.”

The token has another purpose as well which is continuing to fund the project. ENS founder Nick Johnson said that so far they survived on grants while building the platform and traction. Now that it has traction, ENS set a record for new .eth name registrations with more than double its previous high of 3500. Yesterday it topped the record with 7125. The end story, however, is that we should not become airdrop farmers all land strives to become rich fast but as blockchain Capital’s Kinjal Shah said, we should find products that we love and use them wisely.

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