The ENS value could be underestimated after this milestone is reached

  • ENS domain registrations in 2022 accounted for 80% of its permanent addresses
  • The NFT fund partner speculated that ENS was undervalued as the on-chain data also supports the opinion

While the broader cryptocurrency sector has experienced turbulent periods in 2022, Ethereum naming service [ENS] She has stepped up her game when it comes to domain registrations. Although ENS domain registrations were launched in 2017, they have gained increased attention in 2021 during the NFT market boom.

Are your ENS mounts blinking green? check Profit calculator

Therefore, one would have imagined that registrations would have been greater than in the market situation in 2022. However, the complexity Ethereum [ETH]The address system has recorded 2.2 million records.

Minimize the ENS at your own risk

Meanwhile, Richard Chen, general partner at NFT mutual fund firm 1, listed ENS as one of three undervalued products he was looking forward to in 2023.

share it Thoughts Crossing Sobstack’s thoughts, Chen stressed that ENS was “the biggest NFT elephant in the room.” In addition, he cited the fact that ENS has its own version of PFP as a major factor that could reduce its performance upwards from 2023. Chen opined,

“ENS also has its own version of PFPs in the form of ENS 3- and 4-digit names. Known as the 999 Club and the 10k Club, I expect these to be some of the most sought-after forms of on-chain identity in the coming year.”

In addition, ENS also captured a good share of the total NFT market in 2022. Chen also considered generative art and MEV apps and wallets to be the other two that had the potential to thrive in the new year. Although interested in ENS domain registrations have wet Since September 2022.

Source: Dune Analytics

Data from the series showed that Chen could have made some valid points regarding her status as undervalued or overrated. to me feelingsThe market value to realized value (MVRV) ratio was -15.60%.

High 1139.22 times on the cards If the ENS reaches the market cap of Bitcoin?

This value indicates that the average ENS investor was holding at a lower price than they would have received. While this could be considered an undervalued situation, there was no certainty that a correction would happen any time soon.

At the time of writing, the ENS token is trading at $10.85, giving up 13.31% of the trading volume over the 24-hour period.

The market value of the ENS in relation to the value realized

Source: feeling

You may need some preparation

The daily chart showed that ENS may struggle to maintain its small gains over the 24-hour period. At the time of writing, indicators from the Exponential Moving Average (EMA) are pointing to potential.

This was because the 20 EMA (blue) could not contain the strength of the 50 EMA (yellow). With the former lagging behind, the ENS was likely to flatten or return to price dumping in the near term.

ENS price action

Source: TradingView

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