Ethereum Name Service (ENS) is going strong so far in 2024, up 96% over the past week, according to CoinGecko data.
This surge comes after ENS experienced a massive decline in 2023 due to a long cryptocurrency winter and regulatory uncertainty.
In June, ENS witnessed a carnage triggered by regulatory action on major exchanges, hitting a five-year low of $6.69. ENS began falling from an all-time high of $83.40 on November 11, 2021, and ended the cycle at a low. The bear market continued until 2023.
At the time of this writing, ENS is trading at $24.8, a 96% increase over the past seven days. With a circulating supply of 31 million ENS, the project has a market capitalization of $761 million.
This resurgence represents a positive trend for ENS, highlighting its resilience in the ever-evolving cryptocurrency landscape.
Ethereum Name Service (ENS) is a decentralized naming system on the Ethereum blockchain. This allows users to obtain a human-readable name, such as “bob.eth”, and link it to identifiers such as addresses, content hashes, and metadata. Unlike traditional DNS, ENS domains are managed by smart contracts and DAOs, reflecting their departure from centralized authority.
Ethereum co-founder Vitalik Buterin emphasized the importance of a layer 2 blockchain that integrates the ENS domain.
His call for a trustless Merkle-resistant based CCIP resolver aims to allow ENS subdomains to be registered, updated, and read directly from layer 2 solutions. This move is consistent with making ENS more affordable and highlighting its importance in the evolving cryptocurrency ecosystem.
The recent Spot Bitcoin ETF approval led to a 55% increase in the price of the ENS token last week, pushing Ethereum (ETH) above $2,400 on January 10th.
Buterin advocates adoption of the ENS domain in decentralized finance. His vision is rooted in unifying the ENS domain to improve user experience across a variety of Layer 2 solutions. This is consistent with a broader industry trend toward faster, more cost-effective transactions.
ENS allows users to purchase domain names on the Ethereum blockchain, providing a more user-friendly alternative to alphanumeric wallet addresses.
ENS has carved out a unique niche with 2.1 million registered domains and 800,000 participants enabling efficient fund transfers.
Despite the recent approval of a Bitcoin spot ETF, SEC Chairman Gary Gensler expressed caution about an Ethereum ETF. Citing Bitcoin’s status as a non-secure commodity token, Gensler did not provide any hints about Ethereum’s classification.