A few days ago Vitalik Buterin, co-founder of Ethereum, publicly praised the decentralized protocol Ethereum Name Services (ENS), highlighting its importance in the web3 landscape and stating that nowadays it is necessary for this service to be available on all layer-2.
As a natural response from the cryptocurrency market, ENS has experienced an unexpected pump of about 50%, bringing the token back into the spotlight after months of being traded at significantly lower price levels.
If in the coming months the decentralized domain protocol truly expands to L2 solutions like Arbitrum, Optimism, Polygon, Zksync Era, Linea, and others, the project’s native crypto will likely be the protagonist of further sudden increases.
Let’s see everything in detail below.
Summary
According to Vitalik Buterin, the service offered by ENS should be available on all Ethereum layer-2s
Vitalik Buterin, pioneer of blockchain technology and inventor and co-founder of the Ethereum smart contract platform, recently spoke out on X (formerly Twitter) to publicly praise the decentralized Ethereum Name Service (ENS) protocol.
This represents a public naming system based on blockchain that allows converting randomly generated letters and numbers of a standard Ethereum address into more easily recognizable words, such as a person’s name or a brand.
It works similarly to other online domain services, where instead of the string of numbers representing the IP address, we find the name of a website, which is more easily readable and memorable for humans.
Ethereum Name Service (ENS) also allows the creation of subdomains, adding a level of flexibility and organization to the management of digital identities.
Vitalik Buterin, also the owner of a decentralized domain called “vitalik.eth,” in his latest post reminded his community of how important this protocol is in the web3 world.
In particular, he emphasized the need for expansion of the service on all Ethereum layer-2s, such as Arbitrum, Optimism, Polygon, ZkSync Era, Linea etc., in order to make it accessible and affordable on multiple networks and for a larger slice of users.
We remind you that in 2019 Vitalik himself paid a whopping 92 ETH for his domain on ENS (when ETH was priced at $212), registering it for 12 years.
In order for the decentralized domain platform to go through a phase of mass adoption, it is essential that it becomes more cost-effective to use.
Buterin’s statements have highlighted the integration of layer-2 platforms with ENS. L2 solutions are essential for the scalability of Ethereum, offering efficient transaction processing off the Ethereum main chain.
He also emphasized the importance of these platforms that implement reliable CCIP (Cross-Chain Interoperability Protocol) solvers based on merkle.
This integration is essential to register, update, and directly read the subdomains of decentralized naming services on L2, thus improving the overall functionality and user experience of the Ethereum network.
The support of the famous inventor of Ethereum for ENS reflects a broader vision for its cryptographic ecosystem, where user experience, scalability, and robustness of decentralized applications are prioritized.
We remind you that this is not the first time he has expressed his approval for the Ethereum Name Service: several times he has had the opportunity to mention it on Twitter for various reasons.
The performance of the ENS crypto: +50% in two days
After Vitalik Buterin’s words in which the need for an expansion of the Ethereum Name Service on different layer-2s for an advantage on transaction scalability was mentioned, the ENS token recorded a strong pump in the crypto markets.
In detail, the cryptographic currency immediately recorded a +24% on the day of Vitalik’s tweet, followed by another bullish follow-up green candle the following day with a +18%.
Overall, in 2 days ENS has grown by approximately 50%, quickly going from $10.26 to $15.06, while also reaching a local high of $16.36 with a spike.
With the latest pump, the token has regained a graphical level that had been lost in April 2023 and had not been recovered since. From June to December of last year, in fact, ENS was always traded within the trading range of 6.5-10 dollars, without any particular attempts to break out.
In the last movement, market volumes have also increased dramatically, supporting the importance that operators have given to the rise in prices.
In the short term, the first resistance to overcome for a bullish continuation of the trend is that of $16, which represents a level touched several times in 2023 and in previous years: a break above it would lead the crypto asset towards the $20 zone.
Next, we find a highway without speed limits and without any particular obstacles to face: once the 20 dollars mark is surpassed, the crypto would enter the price discovery phase, with a likely first stop around 40 dollars.
This scenario could easily become a reality if the ENS service were truly expanded to different layer-2s of Ethereum, where secondary domain platforms are already present.
On the contrary, for ENS the negative scenario occurs with a bearish break of the $13.5 support with a daily close below that threshold and a negative spread in the following days.
After the $13.5, there are the $11.5, which outline the boundary within which it is still possible to consider a phase of increases.
If that figure is broken, in fact, all the pump generated by Vitalik’s words would be nullified, creating the conditions for a bearish quarter for the currency.
At the moment, the odds are more in favor of upward movements, but we need to be careful of the overbought level of the RSI which could lead to some brief downward movements in the coming days.
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