- Ethereum Name Service (ENS) token surged 70% after Vitalik Buterin’s praise.
- Buterin emphasized ENS affordability for all Ethereum users, including layer-2 networks.
- ENS value peaked at $14.7, highest in eight months post-Buterin’s comments.
Following praise from Ethereum’s co-founder Vitalik Buterin, the Ethereum Name Service (ENS) governance token experienced a surge of more than 70% on January 3.
In a Twitter post on January 3, Buterin highlighted the critical significance of the Ethereum Name Service, stressing its necessity to be affordable and accessible to every Ethereum user, including those utilizing layer-2 networks.
Necessary for Scalability
The co-founder believes that it is important for layer-2 networks, which play a significant role in the long-term scalability of the Ethereum network, to possess the ability to record ENS addresses to enhance their user-friendliness.
Additionally, according to data from CoinMarketCap, the value of the ENS token surged from its yearly low of $8.50 to a peak of $14.7, the highest in eight months, following Buterin’s message. Presently, as per CoinMarketCap’s figures, ENS is valued at $14.98, representing a 46.24% increase over the past 24 hours at the moment this text was composed.
On the date of November 28, 2021, the value of ENS peaked at an unprecedented level of $74.25. Concurrently, the broader market for cryptocurrencies began a downturn and soon after embarked on an extended period of declining prices.
Crypto users can acquire a “.eth” domain name through the Ethereum Name Service. This can replace the complex sequence of characters typically used for their wallet addresses, making transferring and receiving funds on the Ethereum network easier.
Additionally, the concept of a “Harberger” tax, introduced by Buterin in September 2022, involved levying a 3% tax on ENS domain names. Buterin argued that this would facilitate broader adoption and decentralized control of ENS addresses by preventing early adopters from hoarding domain names solely to increase profits.
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