Ethereum Co-Founder's Praise Boosts ENS Token Value by 72%
Summary:
Ethereum co-founder Vitalik Buterin's praise boosted Ethereum Name Service's (ENS) governance token by 72%. Buterin emphasized the importance of ENS and its accessibility in layer-2 networks like Optimism, Arbitrum, and Polygon. Post his comments, the value of ENS token increased significantly. ENS, which facilitates the purchase of a ".eth" domain name to simplify crypto transactions, had previously been proposed a 3% tax by Buterin to prevent domain name hoarding and encourage decentralization.
On January 3, the Ethereum Name Service (ENS) governance token saw a remarkable 72% leap in value, owing to positive remarks from Ethereum co-founder, Vitalik Buterin about the domain platform. He used his X (formerly Twitter) account to commend the ENS for its significance and stressed that the service should stay accessible and affordable for all Ethereum network users, particularly those leveraging layer-2 networks.
Buterin stated that layer-2 networks, including Optimism (OP), Arbitrum (ARB), and Polygon (MATIC) -- networks that critically contribute to the Ethereum networks' long-term scalability -- should support registration of ENS addresses in order to enhance their user-friendliness. Post Buterin's comment, the ENS token saw a 72% spike, taken from CoinMarketCap.
Buterin's post led to an increase in the ENS token's price which went from a yearly low of $8.50 up by over 72% to an eight-month high of $14.7, drawing from CoinMarketCap data. Currently, ENS is trading at $12.9, after having attained an all-time high of $74.25 on November 28, 2021, coinciding with the broader crypto market's fall.
The Ethereum Name Service offers crypto enthusiasts the option to buy a ".eth" domain name. Such a domain name can substitute the typically long, cryptic series of numbers and letters that make up a user's wallet address, thus facilitating an easier transfer and reception of funds between parties on the Ethereum network. It's worth noting that back in September 2022, Buterin suggested a 3% tax on ENS domain names, referred to as the "Harberger" tax proposal, in an effort to discourage early users from monopolizing domain names for maximizing profits. This, he believed, would encourage widespread acceptance and decentralized ownership of ENS addresses.
Published At
1/4/2024 3:41:31 AM
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