Ethereum Name Service’s price surged on Wednesday as demand for the coin surged. ENS token prose hit a high of $16.81, which was its highest level since May 9 of this year. It’s up more than 127% from its lowest level this year. Its market cap has grown to over $422 million.
The demand for Ethereum Name Service is increasing
Ethereum Name Service is a leading blockchain project aiming to disrupt the domain registration industry. This is a sector currently dominated by GoDaddy and HostGator. It competes with platforms like Unstoppable Domains.
The platform helps people register their domains with the eth suffix. As a result, it can help people to have their domain names and their own decentralized websites. Most importantly, the platform has become an integral part of the Non-Fungible Token (NFT) industry.
ENS price has surged as demand for the coin increases. The network recorded over 378,000 .eth domain registrations in July. It now has over 1.86 million users and has generated over $6.8 million in log revenue. These fees are all distributed to the Decentralized Autonomous Organizations (DAO).
Analysts believe that the number of registrations has skyrocketed due to the upcoming Ethereum merger. Merge is a major event that will completely change the way Ethereum works, transitioning it from a Proof-of-Work (PoW) and a Proof-of-Stake (PoW) network. However, it is unclear how the merger will affect Ethereum Name Service activities.
Another reason for the increase in domain usage is the falling gas fees on Ethereum’s network. Gas tariffs have fallen sharply in recent months as activity on the grid has decreased. In addition, the network has started supporting non-English domains.
ENS Price Prediction
The four-hour chart shows that the price of the Ethereum Name Service has been in a strong uptrend for the past few weeks. The coin managed to move above the key resistance level at $14.08, which was its highest on May 23rd.
ENS price remains above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has continued to rise and is approaching overbought levels. Therefore, the coin is likely to continue higher as the bulls target the next key resistance level at $20. A move below the $15 support level will invalidate the bullish view.
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