- ENS developers have announced plans to implement Layer 2 interoperability.
- ENS has seen increased buying pressure in recent weeks.
During a calling community on June 28, 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 is the market cap of ENS in terms of BTC
Through this implementation, ENS Labs aims to provide users with improved performance, scalability, and cost efficiency in managing their ENS domains.
According to ENS Labs, off-chain resolvers, which use an ENS off-chain registrar contract and the services of CoinBase’s cb.id, Lens Protocol and OptiNames (on Optimism [OP]), will be carried out.
The decentralized domain name system’s decision to introduce L2 interoperability for its domain names comes at a time marked by an increased influx of projects and protocols into the L2 ecosystem.
According to data from L2Beat, the total value of assets locked to L2 service providers has grown more than 190% in the past year. At the time of writing, this amounted to $9.78 billion, with Arbitrum [ARB] enjoying a 60% market share and a total value locked (TVL) of $5.87 billion.
Source: L2Beat
Purchases of ENS domain names in Q2
According to data from the on-chain analytics platform Dune analysismonthly registrations of ENS domain names were 79,463 last quarter.
With June marked by a steep drop in gas fees paid on the Ethereum network, the month recorded the highest number of registrations during the three-month period under review. According to data from Dune Analytics, 35,932 ENS name registrations were made in June alone.
Source: Dune analysis
Interesting while monthly. et name registrations ended the second quarter with a rally, primary ENS name registrations fell significantly. A primary ENS name is a unique domain name registered and associated with an Ethereum address on the ENS platform.
Further, protocol revenue registered a decline, according to Token terminal. Notably, ENS recorded cumulative earnings of $4.8 million between April 1 and June 30. To that extent, turnover fell by 21% during this period.
According to the data provider, ENS revenue is down 5.11% year-over-year.
Source: Token Terminal
Increased purchase of ENS tokens
A look at the price performance of ENS on a daily chart revealed a rebound in ENS accumulation since mid-June. Since then, indicators for the alt’s Relative Strength Index (RSI) and Money Flow Index (MFI) have been on an upward trend.
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. During the same period, ENS recorded a corresponding value growth of 22%.
With the alt’s Moving Average Convergence Divergence (MACD) indicator posting slightly elongated histogram bars and the MACD line resting above the trendline, a bullish run was underway at the time of writing.
Source: ENS/USDT on TradingView
