Ethereum Name Service has made headlines this week as investors focus on its popularity in the NFT industry. The ENS token is trading at $17.43, which is slightly below this weeks’ high of over $20. It is still about 33% above the lowest level this year.
What is Ethereum Name Service?
Ethereum Name Service is a unique blockchain project that is disrupting the giant industry of domain registry. The industry is now dominated by companies like GoDaddy and BlueHost.
The traditional industry is highly unfavourable for end users. For one, a centralized website host can decide to censure or delist a domain that posts content that they disagree with. Similarly, in the long term, the concept can be very expensive to the end-user.
Ethereum Name Service uses a decentralized autonomous organization (DAO) to offer these services. Also, instead of users paying an annual fee, it charges them a simple single payment, which is a cost-effective process.
Further, Ethereum Name Service uses the concept of NFTs. In the past few days, people have been buying three and four-letter number NFTs that have a .eth suffix. According to OpenSea, the volume of Ethereum Name Service NFTs has jumped sharply in the past few days. It has risen by over 2,000% in the past seven days.
Another reason why the ENS price has done well is that the popularity of ETH domains has also risen in the past few months. Analysts believe that this demand will keep rising in the coming months.
Further, it faces little competition in its industry. The only major competitor is Unstoppable Domains, which offers other domain suffixes like .crypto., .x, and .x among others.
Ethereum Name Service price prediction
The four-hour chart shows that the ENS price has been in a strong bullish trend in the past few weeks. A closer look shows that it is above the 25-day and 50-day moving averages. It has also formed a cup and handle (C&H) pattern, which is usually a bullish sign. The current decline is part of the handle section. At the same time, the Stochastic Oscillator has moved below the overbought level.
Therefore, there is a likelihood that the Ethereum Name Service price will keep rising in the next few days. If this happens, the coin will keep rising as bulls attempt to move above $20. Here’s how to buy Ethereum.
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