The recent ENS token drop that launched on November 8th has stirred the waters of the crypto space. Wallet naming services like Tezos Domains and Unstoppable Domains have seen significant spikes in user activity following the ENS governance drop.
Looking at Tezos Domains, the main provider of human-readable wallet names for the Tezos blockchain, the boost in activity is impressive. In the past seven days, the platform recorded 181% more unique active wallets interacting with its smart contracts. Consequently, the number of processed transactions spiked 160% to more than 6550, while volume jumped 13% to over $37.240.
Similarly, Unstoppable Domains, a multi-chain wallet name provider has seen its user base increase by 71% in the past seven days. A visible increase on November 8th hints at the correlation between this spike and the ENS token drop. Transactions processed by the platform skyrocketed 119% as well.
ENS token drop
The Ethereum Name Service, or ENS, is the most recognized human-readable wallet name provider for the Ethereum ecosystem. Their recent move to decentralized and community-based governance has put the spotlight on wallet naming as a service.
The ENS token drop attracted thousands of users, and importantly brought significant rewards to early adopters. An average airdrop for a single ENS domain circled between 70 and 150 tokens. At the time of writing, 150 ENS tokens are worth about $9,450. This is not an insignificant amount of money, and ENS fans are definitely happy about it.
The hype around the ENS token drop also brought forward a more global awareness towards naming systems for cryptocurrency wallet addresses. As the crypto ecosystem continues to grow, and more protocols join, global naming systems will become a necessity.
Web3 and the Metaverse
By default, your cryptocurrency wallet address consists of a long series of letters and numbers. However, naming solutions like ENS allow you to easily interact with your wallet address in a human readable format. Instead of the long string of letters and numbers, you’ll be able to share, use and interact with your wallet by simply typing “mywallet.eth”, for example.
Importantly, the need for an accessible format to identify yourself through your wallet will become even more prominent in the future. Especially, as the Metaverse enters the mainstream. Imagine visiting a Somnium Space event and simply logging in with “mywallet.eth”. This is a much easier and user-friendly process, which will also help more people get into crypto. Forget about the long strings of characters. With wallet naming services like ENS, Tezos Domains, and Unstoppable Domains, you can give your wallet an identity.
Aside from their utility as identity tags for the metaverse, named wallets are generally easier to use. For example, if you want to take a look at your portfolio with DappRadar’s Portfolio Tracker, you can simply enter your ENS name and your wallet will load right up.
Naming services for crypto wallets are still in their infancy, and utility for them will keep increasing. DappRadar will continue monitoring this sector of the crypto world, as more people realize the benefit behind human-readable naming for crypto wallets. If you want to learn more about blockchain-based naming systems and their importance, check out the links below. To stay on top of news in the crypto space, follow DappRadar on Twitter, and join our Discord community.
