Why I’m bullish on $ENS

Figure 1: The entire history of ENS on the Binance Exchange. Since it hit a high a few weeks after its listing, it has experienced a bear market and has been falling. It can be seen that it has fluctuated at the bottom (7~30U) for about two years. In the second half, no matter what happened to Bitcoin, In fact, he has accurately controlled the price at 7~10U and maintained it for several months. It can be seen that the market makers are making acquisitions there, laying a good foundation for the market outlook.

1. Is the market capitalization ceiling of $ENS too high or does it have the potential for considerable upside?

As one of the important infrastructures in the crypto field, $ENS’s market value positioning is the core concern of investors. Since $ENS itself is the leader of this track, there is no relevant benchmark. Considering that the current ranking of $ENS on Coinmarketcap is only 121 and the FDV is 2.51B, as an important infrastructure of the Ethereum ecosystem, I personally believe that $ENS has the potential to enter the top 30 in market capitalization.

Judging from whether the track is in an explosive upward period, if we use this round of bull market user growth as a reference, I think this round of Web3 will reduce the number of users participating in DApps on the chain due to the popularity of side chains (Layer2). , SocialFi and GameFi, and because both ETH and Layer2 can share the same .eth user name, everyone will realize the importance of user names.

2. Is there an objective indicator for $ENS to measure upward momentum?

The growth in the number of domain name registrations and registered addresses can be used as key indicators. With the development of Web3 and the popularity of Layer2 technology, the application scenarios of $ENS will be further expanded, which will directly promote the growth of its market value.

3. Track (certainty/uncertainty)

It is a deterministic track, the domain name is a rigid need of Web3, the market size is Ethereum chain, the business model is clear, profits are achieved by charging annual maintenance fees, and the characteristics are similar to phone numbers, usually registered for many years at a time and will not change for a long time. , it is found from the number of registrations that a certain number of registrations are still maintained in the bear market.

4. Risk considerations:

The logic of the rise of $ENS token is not clear, because it is a governance token. Holding $ens can go to @ens_dao to participate in voting to determine future development. Although it is similar to the concept of stocks, $ens will not use the income received There is repurchase and destruction, no liquidity mining, and no Launchpad.