A report by Dune Analytics has been published on the status of ENS domain names. The trends shown in the report can be worrying for ENS domain names.
The trends show a fall in the number of .eth domain name registrations on a monthly basis. The number has continued to fall since its peak in November, the previous year. The reason for that spike was the sudden interest in ENS domain name.
Ethereum Name Service (ENS) grabbed headlines the previous year for airdropping tokens. ENS domain name holders who had the domain names before 30th October, 2021 got ENS tokens. ENS token valuations soared initially after the airdrop.
This led to a spike in .eth domain names registrations in November. According to the report 109,280 .eth domains were registered that month. The number fell and plateaued in January and February with 66,952 and 67,095 .eth registrations respectively. However, the falling trend continued in March also with only 22,706 new registrations.
The decrease in registrations is understandable considering the extraordinary situations that manufactured the hike. However, this should not mean an ease down regarding the fall in registrations. The peak achieved through hard means should have been carried on as much as possible.
Another worrying factor for ENS is the continuously falling price of ENS tokens. After some brief fluctuations in November the token has been diving continuously since then.
The domain name registrations if falls below this, would mean registration levels very close to pre-drop levels. ENS would not be hoping for that.