The governance token of the Ethereum Name Service (ENS) experienced a remarkable surge of 72% in value on January 3rd, following an endorsement from Ethereum co-founder Vitalik Buterin.
In a social media post, Buterin praised ENS as “super important” and emphasized the importance of maintaining accessibility and affordability for all users of the Ethereum network, particularly those on layer-2 networks.
Vitalik Buterin’s endorsement
Vitalik Buterin’s endorsement of the Ethereum Name Service highlighted the platform’s significance within the Ethereum ecosystem. He specifically called for layer-2 networks, such as Optimism (OP), Arbitrum (ARB), and Polygon, to enable the registration of ENS addresses. By doing so, Buterin aims to enhance the user experience and accessibility of ENS across various scaling solutions.
Following Vitalik Buterin’s endorsement, the price of the ENS token experienced a surge, reaching an eight-month high of $14.7 from a yearly low of $8.50, according to CoinMarketCap data.
While the price has stabilized, it is trading at $12.9 at publication. This surge in value reflects the positive sentiment generated by Buterin’s endorsement and the potential for increased adoption of ENS.
ENS and its role in the Ethereum ecosystem
The Ethereum Name Service (ENS) simplifies user interactions within the Ethereum network. It allows users to purchase ” .eth” domain names, which can replace the complex alphanumeric wallet addresses. This simplification makes transferring and receiving funds on the Ethereum network easier, enhancing usability and accessibility.
In September 2022, Vitalik Buterin proposed a 3% tax on ENS domain names, known as the “Harberger” tax proposal. Buterin’s rationale behind this proposal is to prevent early users from hoarding domain names solely for profit maximization.
By implementing this tax, Buterin aims to promote wider adoption and more decentralized ownership of ENS addresses, aligning with Ethereum’s principles of accessibility and decentralization.
ENS reached its all-time high price of $74.25 on November 28, 2021, when the broader cryptocurrency market was experiencing a downturn, entering an industry-wide bear market. Despite the market conditions, ENS demonstrated its resilience and continued attracting attention from users and investors.
