Vitalik Buterin Pushes ENS Token Price up 80%

Vitalik Buterin pushes ENS token price up 80%

The governance token of the Ethereum Name Service (ENS) project increased by more than 50% last night (January 3), after an announcement from Vitalik Buterin.

All L2s should be working on (trustless, merkle-proof-based) CCIP resolvers, so that we can have ENS subdomains registerable, updateable and readable directly on L2s.

ENS is super-important, it needs to be affordable!https://t.co/Ice1lTttFE

— vitalik.eth (@VitalikButerin) January 3, 2024

Sharing on his Twitter page, the founder of Ethereum wrote:

All layer-2s are being built on CCIP (Cryptographic Claimed Identifiers Protocol) infrastructure that will help increase convenience and accessibility for managing ENS subdomains directly on these blockchains. ENS is extremely important Importantly, it needs to be more affordable.

Vitalik believes that layer-2s such as Optimism (OP), Arbitrum (ARB), and Polygon (MATIC) are essential for Ethereum’s long-term scalability. Therefore, he encourages these blockchains to combine with the ENS domain to upgrade user experience in the decentralized finance (DeFi) space.

Immediately after Vitalik’s tweet, the ENS token price immediately “rocketed” by 80%, increasing sharply from about 8.5 USD to 14.9 USD. This is also the highest price this token has achieved since April 2023.

ENS trading volume has also “exploded” to 167 million USD, increasing 650% since last night. At the time of writing, ENS price is being adjusted according to the general trend of the entire market and is trading around 11.98 USD.

Ethereum Name Service (ENS) provides domain name services on the Ethereum blockchain, helping to simplify the money transfer process and replace the use of complex wallet addresses. The project has attracted attention with the ENS token airdrop event worth up to 500 million USD in November 2021.

Essentially, each domain name is an NFT created on Ethereum, which is used to identify the holder. Users can choose a name to print on the .eth domain, then go through the mint process and pay usage fees to the Ethereum Name Service for a specific period of time. There are currently more than 2.1 million ENS domains created, with 800,000 owners, according to data from Dune Analytics.

There are currently about 800,000 users owning ENS. Source: Dune Analytics

In September 2022, Vitalik proposed a 3% tax on ENS domains in the “Harberger” suggestion. According to Vitalik, this measure will help prevent domain hoarding among early adopters, who are looking to maximize profits, in order to promote the generalization of this service and at the same time minimize centralization to ENS addresses.

Should there be demand-based recurring fees on ENS domains?https://t.co/s22CY0PyYd

— vitalik.eth (@VitalikButerin) September 9, 2022