April 19, 2024
Vitalik Buterin's Praise Propels ENS Token to 70% Surge
Altcoins News

Vitalik Buterin’s Praise Propels ENS Token to 70% Surge

In a notable turn of events, the governance token of the Ethereum Name Service (ENS) experienced a remarkable surge of 72% on January 3, fueled by praise from Ethereum co-founder Vitalik Buterin. The renowned blockchain figure expressed his appreciation for the Ethereum Name Service in a post on X (formerly Twitter), deeming it “super important.” Buterin emphasized the importance of keeping the platform accessible and affordable for all users on the Ethereum network, particularly those utilizing layer-2 networks.

“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,” Buterin remarked, underlining his vision for layer-2 networks like Optimism, Arbitrum, and Polygon to be able to register ENS addresses, enhancing user convenience.

Following Buterin’s endorsement on X, the price of the ENS token witnessed a substantial surge, soaring from a yearly low of $8.50 to an impressive eight-month high of $14.70, according to CoinMarketCap data. Although the price has since stabilized, currently trading at $12.90 at the time of publication, the surge underscores the market’s response to Buterin’s positive sentiment.

It’s worth noting that ENS achieved an all-time high of $74.25 on November 28, 2021, coinciding with a broader market downturn that marked the beginning of a sustained industry-wide bear market.

The Ethereum Name Service plays a pivotal role in simplifying crypto transactions by allowing users to acquire a “.eth” domain name, replacing the intricate alphanumeric strings that typically constitute wallet addresses. This streamlines fund transfers and enhances the overall user experience within the Ethereum network.

Notably, in September 2022, Buterin proposed a 3% tax on ENS domain names, known as the “Harberger” tax proposal. He argued that such a tax would discourage domain name hoarding among early users seeking to maximize profits, ultimately fostering broader adoption and decentralized ownership of ENS addresses.

As the ENS governance token experiences significant fluctuations in response to Buterin’s endorsement and the broader developments within the Ethereum ecosystem, the crypto community remains attentive to potential impacts on the platform’s future and the evolving landscape of decentralized naming services.

Image by Philip McMaster on Flickr

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