Loading...

Ethereum Name Service (ENS) governance token surges 72% following Vitalik Buterin’s praise

TL;DR

  • ENS token soars 72% due to Vitalik Buterin’s praise for its importance.
  • Buterin wants layer-2 networks to use ENS, boosting the token prices.
  • A 3% tax proposed by Buterin aims to prevent domain hoarding and expand adoption.

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.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Ethereum
Cryptopolitan
Subscribe to CryptoPolitan