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ethereum Naming Service (ethereum-name-service” target=”_blank” rel=”noopener”>ENS) is enjoying bullish momentum in 2024 so far, gaining 96% over the past week, according to data from CoinGecko.
The surge comes after ENS experienced a massive drop in 2023 due to the prolonged crypto winter and regulatory uncertainties.
In June, ENS witnessed a bloodbath caused by regulatory actions against major exchanges, hitting a five-year low of $6.69. ENS began falling from its all-time high of $83.40 on November 11, 2021, ending with a cycle low. The bear market continued until 2023.
At the time of writing, ENS is changing hands for $24.8, which is an increase of 96% in the last seven days. With a circulating supply of 31 million ENS, the market capitalization of the project amounts to $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 move away from centralized authority.
Vitalik Buterin, co-founder of ethereum, has emphasized the importance of eth.limo/general/2023/10/31/l2types.html” target=”_blank” rel=”noopener”>layer-2 blockchains that incorporate ENS domains.
Their call to resolve trustless, Merkle-based CCIPs aims to enable ENS subdomains to be registered, updated, and readable directly in layer 2 solutions. This move is aligned to make ENS more affordable and underscores its importance in the evolving crypto ecosystem.
It will be recalled that the recent approval of the Spot bitcoin ETF caused a 55% increase in the price of the ENS token last week, with ethereum (eth) surpassing $2,400 on January 10.
Buterin advocates the adoption of ENS domains in decentralized finance. His vision is based on improving user experiences through various layer 2 solutions by integrating ENS domains. This aligns with the broader industry trend of seeking faster and more profitable transactions.
ENS allows users to purchase domain names on the ethereum blockchain, offering a more user-friendly alternative to alphanumeric wallet addresses.
ENS has created its unique niche with 2.1 million registered domains and 800,000 participants where efficient fund transfers are enabled.
Despite recent bitcoin spot ETF approvals, SEC Chairman Gary Gensler expressed caution toward an ethereum ETF. Mentioning bitcoin's status as a worthless commodity token, Gensler did not give any clues about ethereum's classification.
