Ethereum Name Service (CCC:ENS-USD) offers people who have created a domain name with Ethereum (CCC:ETH-USD) Name Service to get a free ENS token. This token gives ENS domain holders the opportunity to participate in the governance of ENS crypto.
Right now, there are enough ENS crypto tokens to produce a market cap of $ 840 million. According to the latest data from ENS.domain, there are now 552,000 names and 227,000 owners.
It’s like at the start of the Internet. You can buy and create a domain on the ENS site with “.ETH” after the name, as opposed to “.com”.
ENS crypto is available for anyone who creates an ENS domain name and you have until May 4, 2022 to claim your token.
To do this, you must first set up a metamask or other wallet. Then go to ENS.domain and pay the domain fees, which are renewable annually or however many years you designate. There is also an interesting article on Medium which explains how to set up your own ENS domain.
What does this mean for Ethereum Name Service Crypto
Once the Ethereum Name Service crypto token limit is exceeded, there will clearly be a limited number of tokens. At this point, the ENS crypto value can be determined in the long term.
In addition, the ENS token will be used to vote on a constitution proposal and governing protocol parameters for the ENS community.
It is essentially a “dropping”For ENS domain holders. As such, ENS crypto holders can essentially keep some value in the ENS crypto token offsetting the cost of setting up and maintaining their Etheruem Name Service domain.
In addition, some people are now trading ENS domains on the OpenSea NFT (non-fungible tokens) exchange. So if you find a domain name that nobody owns yet, you might be able to sell it on Opensea.
What ENS Crypto is worth
Currently, the ENS crypto is trading at $ 41.52 as of December 17, 2021. This represents a significant drop from its recent high of $ 81.69 on November 27.
The price of ENS crypto is therefore quite volatile. I suspect that after May 4, 2022, the price will firm up considerably. The reason is simple. The drop will then stop, and the supply of ENS tokens will be defined and limited.
This therefore offers an attractive purchase entry point for investors. You can either pay the money to buy a domain name and get your free ENS token allowance, or invest in the tokens.
Based on Coinmarketcap.com’s analysis of where ENS crypto tokens trade, the easiest way to buy ENS crypto is on the Global Coinbase (NASDAQ:PIECE OF MONEY) exchange. This is because you can pay directly in dollars and don’t have to buy more cryptocurrency first.
The value of the ENS crypto token will only become clear after the May 2022 deadline. Then we will know exactly how many tokens are in circulation.
There could be a continuing value for owning ENS tokens. The crypto token gives a vote on how the entire ENS system works.
It all reminds me of the start of the internet and everyone was buying the most original domain names they could think of. The same is now happening with “.ETH” domains. The good news is, you can get value for your investment by claiming an ENS crypto token before May 4, 2022.
As of the publication date, Mark Hake does not hold (directly or indirectly) any positions in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publication guidelines.
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