On January 3, a significant development led to an impressive 80% surge in the value of the Ethereum Name Service (ENS) token.
This sudden increase, which marked an eight-month high, can be attributed to the public recognition and praise given by Ethereum’s co-founder, Vitalik Buterin, highlighting the importance and value of this service.
Vitalik Buterin’s Endorsement of ENS
On Jan. 3, Buterin took to X (formerly Twitter) to express his views on the Ethereum Name Service, deeming it “super important.”
He emphasized the necessity for the service to remain accessible and affordable for all Ethereum network users, particularly those on layer-2 (L2) networks.
Buterin highlighted the need for all L2s to work on CCIP resolvers based on trustless, merkle-proof technology. This move would enable the registration, updating, and reading of ENS subdomains directly on L2 networks.
According to Buterin, integrating ENS addresses with layer-2 networks like Optimism (OP), Arbitrum (ARB), and Polygon enhances user-friendliness and is crucial for Ethereum’s long-term scalability plans.
This integration is expected to streamline operations as ENS domains replace the complex alphanumeric wallet addresses traditionally used in transactions.
ENS Token Surges by Over 80%
After the influential tweet by Buterin, the ENS token experienced a significant increase from its yearly low of $8.50. According to CoinGecko data, it has surged by 85% to reach its highest value in eight months at $15.8.
The ENS token is being traded at $14.8 at the time of writing. This reflects a 45.1% price increase in the last 24 hours and a 42.7% rise over the past seven days.
The Ethereum Name Service is a domain platform on the Ethereum blockchain that allows users to acquire domain names. The decentralized naming system was meant to facilitate users in obtaining user-friendly names such as “bob.eth,” linked with identifiers such as addresses, content hashes, and metadata.
According to Dune Analytics, the Ethereum Name Service currently boasts over 2.1 million registered domains and 800,000 unique participants.
In September 2022, Buterin proposed a novel taxation approach for ENS domain names. The “Harberger” tax, set at 3%, aimed to discourage the hoarding of domain names by early adopters, promoting a more equitable and decentralized ownership of ENS addresses.
