The Ethereum Name Service (ENS) project’s governance token saw a rapid rise of more than 50% in value, fueled by praise from Ethereum co-founder Vitalik Buterin.
The promotion occurred after Buterin highlighted the fundamental importance of the ENS service by calling it “super important” in a post through X.
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
Buterin emphasized the need for layer 2 (L2s) networks, such as Optimism, Arbitrum and Polygon, to implement CCIP (Certificateless Cross-Chain Interoperability Protocol) resolvers.
These resolvers would allow ENS subdomains to be registered, updated, and read directly at these sublayers, thus improving usability and accessibility for Ethereum users.
Ethereum Name Service (ENS) has seen a significant increase in value, reaching $14.07 according to data from CoinMarketCap, representing an increase of 16.02% over the course of one day.
This rise has contributed to the strengthening of its market capitalization, which has increased by 16.39%, reaching a figure of $427,425,485.
The Ethereum Name Service, a platform that allows users to purchase domain names on the Ethereum blockchain, has gained traction with 2.1 million registered domains and the participation of 800,000 unique users, according to statistics from Dune Analytics.
ENS service makes fund transfers easier by replacing long and complex addresses
Buterin argued that integrating ENS domains into layer 2 blockchains would improve the user experience, especially in the realm of decentralized finance (DeFi).
This integration would allow greater interoperability and convenience in the use of financial applications in the Ethereum ecosystem.
Buterin’s endorsement and statements have been a significant driver of the ENS token rally, underscoring its importance in Ethereum’s infrastructure and its role in expanding accessibility and utility within the blockchain ecosystem.
This sudden increase in the value of the ENS token demonstrates how the vision and support of influential figures like Vitalik Buterin can quickly impact the market, highlighting the relevance and potential of innovations within the cryptocurrency and blockchain ecosystem.