ENS Token Soars by 50% Following Vitalik Buterin's High Praise

• Ethereum Name Service (ENS) Token Rises Following Vitalik Buterin's Endorsement
• Buterin's Vision for ENS
• Understanding Layer-2 Blockchains
• Ethereum Name Service Explained
• Integration with Decentralized Finance (DeFi)
• ENS Trading Volume Soars

Ethereum Name Service (ENS) Token Rises Following Vitalik Buterin's Endorsement

The governance token of the Ethereum$2,315 -2.42% Name Service project, ENS, experienced a whopping 50% surge on Wednesday. This followed a statement by Ethereum co-founder Vitalik Buterin who hailed the service as super important.

Buterin's Vision for ENS

Buterin called for all Layer-2 (L2) blockchains to focus on developing trustless, merkle-proof-based CCIP resolvers to facilitate ENS subdomains. These domains should be registerable, updateable, and readable directly on L2s. He emphasised the importance of ENS, particularly its affordability.

Understanding Layer-2 Blockchains

Layer-2 blockchains are essentially mechanisms designed to aid the scaling of a base, or layer-1, blockchain. They enable faster, cheaper transactions. Notably, ENS is currently trading at its highest level since April, reaching $12.54 after bouncing from a low of $8.50 earlier in the day. This information is based on data from CoinMarketCap.

Ethereum Name Service Explained

Ethereum Name Service is a platform that allows users to purchase a domain name on the Ethereum blockchain. These domains can then serve to replace alphanumeric wallet addresses for fund transfers and receipts. There are roughly 2.1 million registered ENS domains at present, with 800,000 unique participants, based on data from Dune Analytics.

Integration with Decentralized Finance (DeFi)

Buterin went on to suggest that integrating ENS domains with layer-2 blockchains could significantly enhance the user experience in decentralized finance (DeFi).

ENS Trading Volume Soars

Following Buterin's remarks, the trading volume for ENS pairs witnessed a staggering 674% rise to $167 million on Wednesday.

Edited by Jonathan Stoker