The governance token of the Ethereum Name Service (ENS) experienced a 72% surge on January 3 after Ethereum co-founder Vitalik Buterin praised the domain platform. In a post on social media platform X (formerly Twitter), Buterin expressed the importance of ENS and emphasized the need for accessibility and affordability for all users on the Ethereum network, particularly those on layer-2 networks.
Buterin called for layer-2 solutions like Optimism, Arbitrum, and Polygon to work on trustless, Merkle-proof-based CCIP resolvers, allowing ENS subdomains to be registered, updated, and read directly on layer-2 networks. Following Buterin’s endorsement, the price of the ENS token increased from a yearly low of $8.50 to an eight-month high of $14.70, marking a 72% surge. The current price of ENS is $12.90 at the time of publication.
ENS provides a way for crypto users to acquire a “.eth” domain name, simplifying wallet addresses with a user-friendly identifier. The platform reached an all-time high of $74.25 on November 28, 2021, during a period when the broader crypto market experienced a decline. Notably, Buterin proposed a 3% tax on ENS domain names in September 2022, known as the “Harberger” tax proposal, aiming to prevent domain name hoarding and promote wider adoption and decentralized ownership.
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