Why did the Ethereum Name Service (ENS) token suddenly increase by almost 70%?

While the overall cryptocurrency market is falling today, the Ethereum governance token Name Service (ENS) has seen a remarkable increase of almost 70% in just over 2 hours. What are the reasons for this sudden increase?



Market Is In The Red But ENS Token Price Gains Almost 70%

While the decline in the price of Bitcoin (BTC) and more generally the crypto market as a whole dominated the news of the day, the underdogs stood out from the crowd and managed to pull off surprising feats against the odds.

This is especially the case with ENS, the Ethereum Name Service governance token, an application that offers decentralized domain names for Web3 wallets or websites. Effectively, ENS increased by almost 70% in about 2 hours. :

ENS token

ENS token price development since April 2023

while doing so ENS token managed to recover its price for the month of April 2023, meaning it is currently trading at more than $12 per unit. Although the Ethereum Name Service has 2.1 million registered domain names for approximately 800,000 unique users, the price of the ENS token has seen an almost continuous decline since its launch.

👉 To learn more, read our Ethereum Name Service (ENS) white paper

To compare with its current price, ENS reached a high price of $85.69 in November 2021.

This momentary increase (the price of ENS has since fallen again) yes due to the publication of Vitalik Buterin, co-founder of the Ethereum blockchain (ETH), shared on increasing efficiency » to Ethereum layer 2:

“All L2s should work on CCIP (Cross-Chain Interoperability Protocol, NDRL) solutions (trustless and Merkle) so that we can have ENS subdomains that can be uploaded, updated and read directly on the L2. ENS is super important, it has to be affordable! »

According to documentation shared by Vitalik, the Ethereum Name Service, and certain Layer 2s (Optimism, Arbitrum, Starknet, and ZKSync are cited) would work on a solution offering interoperability between ENS domain names” and other applications that need to retrieve data from various off-chain sources “.

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Source: TradingView

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