ENS Makes 300% Gains in a Few Days – What is Ethereum Name Service?

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The Ethereum Name Service (ENS) has surged into the spotlight following a dramatic price rally, with its native token climbing over 300% shortly after launch. As one of the most talked-about developments in the decentralized ecosystem, ENS has captured attention not only for its impressive market performance but also for its foundational role in simplifying blockchain interactions. Backed by a successful airdrop and a listing on a major exchange, ENS is proving to be more than just a speculative asset—it's a critical piece of infrastructure in the evolving web3 landscape.

What is Ethereum Name Service?

Ethereum Name Service (ENS) is a decentralized, blockchain-based naming system built on the Ethereum network. Its primary purpose is to translate complex, machine-readable cryptocurrency addresses—like 0x4bbeEB066eD09B7AEd07bF39EEe0460DFa261520—into simple, human-friendly names such as alice.eth.

This functionality mirrors the traditional Domain Name System (DNS) used on the internet, which converts domain names like google.com into IP addresses. However, unlike DNS, ENS operates in a trustless and censorship-resistant environment thanks to its foundation on smart contracts and the Ethereum blockchain.

ENS domains are structured hierarchically. At the top level is the .eth domain, managed by a smart contract known as a registrar. Users can register subdomains under .eth, and once registered, they gain full control over their domain and any subdomains they create.

👉 Discover how decentralized naming is reshaping digital identity online.

For security and usability, ENS enforces certain rules—such as requiring domain names to be at least seven characters long—ensuring resistance to spam and squatting. Since its mainnet launch on May 4, 2017, ENS has become one of the longest-standing and most widely adopted decentralized services in the crypto space.

Core Functions of ENS

ENS provides two essential services:

  1. Forward Resolution: Converts readable names like bob.eth into cryptographic addresses (e.g., wallet addresses, content hashes).
  2. Reverse Resolution: Allows users to associate metadata—such as a profile picture or display name—with an Ethereum address, enhancing identity verification and user experience across dApps.

These features make ENS indispensable for improving user experience in decentralized applications (dApps), wallets, and NFT platforms. Instead of copying long strings of characters, users can send funds using easy-to-remember names, reducing errors and increasing adoption.

Moreover, ENS domains are ERC-721 tokens, meaning they are non-fungible and can be bought, sold, or traded on NFT marketplaces. This has led to a growing digital collectibles market around premium .eth names like crypto.eth or wallet.eth.

The ENS Token and Governance Airdrop

The ENS token is the governance token of the Ethereum Name Service ecosystem. Launched on November 8, it empowers holders to vote on proposals related to protocol upgrades, treasury allocations, and future development directions—key steps toward full decentralization.

A major catalyst behind ENS’s rapid rise was its highly anticipated token airdrop. However, eligibility was limited: only users who owned an .eth domain before October 31, 2021, qualified. The project took a snapshot of all eligible addresses on that date.

Distribution was based on several factors:

Out of a total supply of 100 million ENS tokens:

To claim tokens, users connected their wallets to the official ENS app and initiated the on-chain claiming process. While gas fees apply, the window remained open until May 4, 2022, allowing users to time their claims strategically.

👉 Learn how blockchain governance is putting power back in users’ hands.

Why Did the ENS Token Surge?

Several factors fueled ENS’s explosive price movement:

At launch, ENS traded around $18. Within days, it climbed to $70—a gain exceeding 300%—giving it a market cap of approximately $1.2 billion. Early recipients celebrated significant windfalls; one user reported receiving over 1,500 ENS tokens worth roughly $105,000 at peak prices.

Frequently Asked Questions (FAQ)

Q: Who is eligible for the ENS token airdrop?
A: Only users who owned an .eth domain before October 31, 2021, were eligible. No new claims are being accepted after the distribution period ended.

Q: How do I claim my ENS tokens?
A: Visit the official ENS app, connect your wallet, and follow the on-chain claim process. You’ll need ETH to cover gas fees.

Q: Can I still buy ENS tokens?
A: Yes. While the airdrop was exclusive, ENS is now available for trading on major exchanges like Binance and Uniswap.

Q: What can I do with my ENS domain?
A: You can use it to simplify crypto transactions, set up a decentralized website (via IPFS), link social profiles, or even sell it as an NFT.

Q: Is ENS similar to traditional web domains?
A: In concept—yes. But ENS is decentralized, giving you full ownership without reliance on centralized registrars like GoDaddy.

Q: Does owning an ENS domain mean I get free tokens?
A: Not anymore. The token distribution was a one-time event based on pre-existing ownership before October 2021.

The Future of ENS and Decentralized Identity

As web3 evolves, digital identity becomes increasingly important. ENS is positioning itself as a cornerstone of self-sovereign identity—where users own and control their online personas without intermediaries.

Future integrations may include:

With strong fundamentals, active community governance, and rising adoption across wallets and dApps, ENS is well-positioned for sustained relevance—even beyond short-term price movements.

👉 Explore how next-gen identity solutions are transforming the internet.

Final Thoughts

The Ethereum Name Service is more than just a naming tool—it's a foundational layer for a user-centric web3 future. Its recent price surge reflects not just market speculation but growing recognition of its utility and long-term potential.

For those who participated early, the rewards have been substantial. For everyone else, ENS serves as a powerful reminder: in crypto, sometimes the most impactful innovations are the ones that make everything else easier.

Core Keywords: Ethereum Name Service, ENS token, decentralized identity, blockchain naming system, .eth domain, crypto airdrop, web3 infrastructure