ENS Rises 10% As Ethereum Name Service Considers Expanding To Layer-2

Dalmas Ngetich

2 years ago

3 mins read

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In a recent community call, the team behind the Ethereum Name Service (ENS) revealed plans to adopt a Layer-2 platform in light of increasing gas fees on the mainnet. In response to this planned move, ENS prices climbed roughly 10%, floating higher with increasing trading volumes, evident in the daily chart.

The Ethereum Name Service

ENS is a decentralized naming system on Ethereum. It provides an easy-to-use and human-readable naming system that allows users to rename mainnet addresses, smart contracts, and other resources. This system permits users to create and employ memorable domain names instead of complicated addresses.

The team behind the ENS believes their solution makes it easier for everyone to interact with the pioneer smart contracting platform, and is handy, especially in sending and receiving transactions. In this arrangement, the platform maps a user’s domain, the human-readable address, with their original address or deployed smart contract on the Ethereum mainnet.

However, since ENS maps all addresses on the Ethereum mainnet, transaction fees apply, a concern considering the fluctuating gas fees on Ethereum. In Ethereum, all transactions, including transfers or smart contract deployment, must be paid for. The amount paid depends on the level of demand in the network, and the value tends to be volatile. Over the past few weeks, Ethereum gas fees have been rising.

Fluctuating Gas Fees

According to YCharts data on June 30, the average gas fee for sending a transaction stood at $34.62, down from $42.77 recorded on June 5. As of May 12, it stood at $77.88. The only time gas fees on Ethereum fell was on June 25, when it was at $16.58. At this level, the gas fee is relatively high compared to other networks. For example, the average transaction fee in Bitcoin was $2.383 on June 30, down from $9.018 on May 12.

Meanwhile, in layer-2 platforms, transaction fees and smart contract deployment costs are relatively lower, according to trackers. As an illustration, gas fees on Optimism, a popular Ethereum layer-2, is $0.03 as of July 2.

Considering the high gas fees on Ethereum, ENS, via two improvement proposals, ENSIP-10 and EIP-3668, will further expand to a Layer-2 platform as a relief for users sensitive to high gas fees on Ethereum as part enhancing interoperability. During the call, the team said this would scale the platform and open the service to more people.

ENS price on July 2| Source: ENSUSDT on Binance, TradingView — ENS price on July 2 | Source: ENSUSDT on Binance, TradingView

In response, ENS prices are up 10% on the last trading day, changing hands at $9.42 at the back of increasing trading volumes. Still, it remains to be seen whether prices will continue edging higher once the platform migrates to a Layer-2 platform. For now, ENS has registered over 2.73 million names owned by more than 697,000 entities.

Featured image from Canva, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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