ENS: 21,000 New .eth Registrations in March, Protocol Revenue Hits $1.3M

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Ethereum Name Service (ENS) continues to solidify its role as a foundational identity layer in the decentralized web. In March 2024, the protocol reported strong growth metrics, including 21,000 new .eth domain registrations, pushing the total number of registered domains past 2.06 million. Alongside user adoption, ENS generated $1.3 million in protocol revenue—all of which flows directly to the ENS DAO, reinforcing its community-driven governance model.

This surge in activity highlights a growing demand for human-readable blockchain identities. As more users and developers interact with decentralized applications (dApps), the need for simplified addresses—replacing complex hexadecimal strings with easy-to-remember .eth names—has never been greater.

Key Metrics from March 2024

These figures reflect not just growth in raw numbers but also deeper engagement across the Ethereum ecosystem.

👉 Discover how decentralized identity is shaping the future of web3.

Why ENS Matters in Web3 Identity

At its core, ENS solves a fundamental usability problem: blockchain addresses are long, error-prone, and difficult to remember. For example, sending funds to 0x742d35Cc6634C0532925a3b8D4C7d2f8c7B5d6aE is far less intuitive than sending to alice.eth.

By mapping human-readable names to blockchain addresses, content hashes, and metadata, ENS streamlines interactions across wallets, dApps, NFT marketplaces, and decentralized social platforms. It’s not just about convenience—it's about trust, accuracy, and long-term digital ownership.

Moreover, because ENS domains are stored as NFTs on the Ethereum blockchain, they’re fully owned by users. Unlike traditional domain registrars where control can be revoked, ENS gives true self-sovereign identity—a key principle of web3.

The Rise of Avatar Records and On-Chain Identity

One of the most notable trends in the latest data is the continued rise in avatar record settings, now totaling 159,000. This feature allows users to link an image (often an NFT) to their ENS name, which then displays across supported platforms like Discord, Ethereum wallets, and decentralized social networks.

This functionality transforms ENS from a mere address resolver into a unified digital identity. Imagine logging into multiple services with your yourname.eth and having your profile picture, bio, and even reputation follow you seamlessly—without relying on centralized providers like Google or Twitter.

Developers are increasingly building tools that leverage ENS as an identity backbone. Projects like Lenster (a decentralized social media app), Showtime, and ENS-based email alternatives are paving the way for a new internet where users control their data.

Protocol Revenue: A Testament to Sustainable Decentralization

The $1.3 million in revenue generated in March comes primarily from annual registration and renewal fees for .eth domains. What sets ENS apart is that 100% of this income goes to the ENS DAO, governed by ENS token holders.

This model ensures that value created by the network stays within the community. No corporate middlemen. No profit-driven shareholders. Just transparent, on-chain treasury management.

Compared to other decentralized protocols that struggle with monetization or rely on speculative tokenomics, ENS demonstrates how utility-driven revenue can support long-term sustainability.

👉 See how blockchain-based naming services are redefining online identity.

Adoption Trends: Who’s Using ENS?

While early adopters were mostly crypto natives, ENS is now seeing traction among broader audiences:

Even traditional companies are taking notice. Recently, several major brands have registered ENS domains—hinting at future use cases in customer verification, supply chain tracking, or metaverse presence.

Frequently Asked Questions (FAQ)

Q: How do I register an ENS domain?
A: You can register a .eth name through the official ens.domains website using an Ethereum wallet like MetaMask. Prices vary based on name length and demand, starting at $5/year for a five-character name.

Q: Is my ENS domain permanent once purchased?
A: No—ENS domains require annual renewal. If you fail to renew, your name becomes available for others to register after expiration.

Q: Can I use my ENS name across different blockchains?
A: Currently, ENS primarily works on Ethereum and L2 networks like Optimism and Arbitrum. Cross-chain compatibility is expanding through bridges and multi-chain resolvers.

Q: What happens to the money from ENS registrations?
A: All revenue funds the ENS DAO treasury. Proposals for funding grants, development, and community initiatives are voted on by $ENS token holders.

Q: Can I sell my ENS domain?
A: Yes—since ENS domains are ERC-721 NFTs, they can be transferred or sold on NFT marketplaces like OpenSea or Blur.

Looking Ahead: The Future of Decentralized Identity

As web3 matures, identity will remain one of its most critical challenges. Centralized login systems expose users to surveillance and data breaches. Traditional DNS is vulnerable to censorship and takedown requests.

ENS offers a compelling alternative: open, censorship-resistant, user-owned identity infrastructure. With over 844,000 unique wallets now using ENS names—and growing steadily—the network effect is accelerating.

Future upgrades may include enhanced privacy features, improved mobile integration, and broader adoption in decentralized communication protocols.

👉 Explore the next generation of blockchain identity solutions today.

Final Thoughts

The March 2024 data underscores a clear trend: decentralized identity is no longer a niche experiment—it’s becoming essential infrastructure for the modern internet. With over 2 million .eth domains registered and consistent revenue generation feeding back into the community, ENS stands out as one of the most successful and sustainable projects in web3.

Whether you're a developer building the next dApp, an investor evaluating long-term crypto fundamentals, or simply someone tired of managing complex wallet addresses, ENS offers real utility today—and immense potential tomorrow.

Core Keywords: ENS, decentralized identity, .eth domain, web3 identity, ENS DAO, blockchain naming service, crypto domain, Ethereum Name Service