Ethereum Name Service (ENS) has emerged as a top weekly gainer, retesting resistance levels and rallying to a one-year peak. With over 2 million active names, ENS has become a vital component of the Ethereum ecosystem, allowing users to assign easy-to-understand names to their Ethereum addresses. Despite its growing popularity, ENS still boasts a market cap under $1 billion, making it an undervalued project with immense potential.

ENS trading has expanded by 210%, reaching $365 million in 24 hours, with Binance accounting for 24% of all volumes. Traders anticipate the next resistance level between $27.30-$30.40, with some predicting a potential breakout to $80. The ENS rally is expected to continue, fueled by the growing interest in the Ethereum ecosystem and the Web3 narrative.

The success of ENS is deeply rooted in the Ethereum community, with the latest rally coinciding with ETH market prices approaching $4,000. Daily active users on the Ethereum network have also surpassed 500,000 in 24 hours, highlighting the growing adoption of decentralized finance on the Ethereum layer. ENS has become an essential tool for crypto influencers, offering a recognized brand identity and seamless integration with most wallets.

With over 846,978 unique names set as of May 2024, ENS is poised to reach 1 million unique address names. The project has been replicated on widely used L1 networks and is an integral part of the Web3 package offered by most projects. ENS identity owners are also the most active on Ethereum-compatible blockchains, including Optimism, Arbitrum, Metis, and Polygon.

ENS is more than just a personal brand; it also serves as a voting tool, with name owners using their identity to participate in governance decisions. The project generates constant earnings inflows from new address creation and name renewal, with peak revenues from new registrations occurring in 2021 and 2022. During the current bull market, renewals and new accounts account for an equal share of revenues.

ENS identities are also driving Web3 and NFT trades, with both randomly generated and unique, high-profile names being sold through OpenSea. While some top names may never sell, they maintain visibility with extremely high asking prices. In the past week, a high-profile ENS NFT changed hands, among other top NFT resales. Offers for rare ENS or unique names continue to drive regular daily trading, with rock-bottom offers at $0.0008 ETH for the most common names.

In conclusion, Ethereum Name Service (ENS) has emerged as a Web3 powerhouse, offering a unique and essential service to the Ethereum ecosystem. With its growing popularity, undervalued market cap, and potential for further growth, ENS is an exciting project to watch in the coming months. As the Web3 narrative continues to unfold, ENS is poised to play a vital role in shaping the future of decentralized finance and blockchain technology.