Ethereum Name Service up by 96% this week

Ethereum Name Service (ENS) is enjoying bullish momentum in 2024 thus far, gaining 96% over the past week, per CoinGecko data.

The surge comes after ENS experienced a massive drawdown in 2023 due to the longstanding crypto winter and regulatory uncertainties.

In June, ENS witnessed a bloodbath triggered by regulatory actions against leading exchanges, hitting a five-year low of $6.69. ENS started sliding from its all-time high of $83.40 on Nov. 11, 2021, ending with a cycle low. The bear market continued till 2023. 

At the time of writing, ENS is exchanging hands for $24.8, representing a 96 % increase in the past seven days. With a circulating supply of 31 million ENS, the project’s market cap stands at $761 million. 

This resurgence indicates a positive trend for ENS, emphasizing its resilience in the ever-evolving crypto landscape.

For the uninitiated, Ethereum Name Service (ENS) is a decentralized naming system on the Ethereum blockchain It allows users to acquire human-readable names like “bob.eth” and link them to identifiers such as addresses, content hashes, and metadata. Unlike traditional DNS, ENS domains are governed by smart contracts and a DAO, reflecting a departure from centralized authority.

Vitalik Buterin, the Ethereum co-founder, has emphasized the significance of layer-2 blockchains incorporating ENS domains. 

His call for trustless, Merkle-proof-based CCIP resolvers aims to enable ENS subdomains to register, update, and be readable directly on layer-2 solutions. This move aligns to make ENS more affordable and underscores its importance in the evolving crypto ecosystem.

It will be recalled that the recent Spot Bitcoin ETF approval triggered a 55% price increase for ENS token last week, with Ethereum (ETH) breaking above $2,400 on January 10. 

Buterin advocates for the adoption of ENS domains in decentralized finance. His vision is rooted in enhancing user experiences across various layer-2 solutions by integrating ENS domains. This aligns with the broader industry trend of seeking faster and more cost-effective transactions.

ENS enables users to purchase domain names on the Ethereum blockchain, offering a more user-friendly alternative to alphanumeric wallet addresses. 

ENS has made its unique niche with 2.1 million registered domains and 800,00 participants where efficient fund transfers are enabled.

Despite the recent approvals of bitcoin spot ETFs, SEC Chair Gary Gensler expressed wariness towards an Ethereum ETF. When mentioning Bitcoin’s status as a non-security commodity token, Gensler did not give any hint about the classification of Ethereum.