Ethereum Name Service ventures into Layer-2, what about ENS?
- Developers of ENS have announced plans to implement Layer 2 interoperability.
- ENS has seen increased buying pressure in the past few weeks.
During a community call on 28 June, ENS Labs, the developer team behind the Ethereum Name Service [ENS], announced its plans to introduce Layer 2 (L2) interoperability for ENS domains.
Realistic or not, here’s ENS’s market cap in BTC’s terms
Through this implementation, ENS Labs seeks to provide users with improved performance, scalability, and cost efficiency in managing their ENS domains.
According to ENS Labs, off-chain resolvers, which leverage an ENS off-chain registrar contract and the services of CoinBase’s cb.id, Lens Protocol, and OptiNames (on Optimism [OP]), will be implemented.
The decision by the decentralized domain name system to introduce L2 interoperability for its domain names comes at a time marked by an increased inflow of projects and protocols into the L2 ecosystem.
According to data from L2Beat, the total value of assets locked on L2 service providers has grown by over 190% in the last year. At the time of writing, this stood at $9.78 billion, with Arbitrum [ARB] enjoying a 60% market share and a total value locked (TVL) of $5.87 billion.
Source: L2Beat
ENS domain name purchases in Q2
According to data from on-chain analytics platform Dune Analytics, monthly ENS domain name registrations totaled 79,463 last quarter.
With June marked by a steep fall in gas fees paid on the Ethereum Network, the month logged the highest count of registrations during the three-month period under review. Per data from Dune Analytics, 35,932 ENS name registrations were made in June alone.
Source: Dune Analytics
Interestingly, while monthly. eth name registrations ended Q2 with a rally, primary ENS name registrations experienced a significant decline. A primary ENS name is a unique domain name registered and associated with an Ethereum address on the ENS platform.
Further, protocol revenue logged a decline, according to Token Terminal. Notably, ENS registered a cumulative $4.8 million as profit between 1 April and 30 June. Inasmuch, its revenue dipped by 21% during this period.
According to the data provider, on an annualized basis, ENS’ revenue has fallen by 5.11%.
Source: Token Terminal
Increased purchase of ENS tokens
A look at ENS’ price performance on a daily chart revealed an uptick in ENS accumulation since the middle of June. Since then, the alt’s Relative Strength Index (RSI) and Money Flow Index (MFI) indicators have been on an uptrend.
How much are 1,10,100 ENS worth today?
In the same position at press time, they rested at 56.24 and 73.90, respectively. Within the same period, ENS has logged a corresponding 22% growth in value.
With the alt’s Moving Average Convergence Divergence (MACD) indicator posting slightly elongated histogram bars and its MACD line resting above the trend line, a bullish run was underway at press time.
Source: ENS/USDT on TradingView
