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- 1 Ethereum name service protocol displayed a drop of 16% in their 30 days’ earnings.
- 2 The Coinglass liquidation chart suggests a strong liquidity concentration near the $36 mark.
- 3 ENS is trading near the $31.3 mark with an intraday gain of over 20%.
Ethereum Name Service (ENS) is a distributed, open and extensible naming system based on the Ethereum blockchain. It converts any address to a human readable address like “amy.eth.”. Its goal is to make Ethereum name service easier to access and comprehend for humans like DNS. The protocol has over 2.14 Million names with 409 integrations and 800k owners. ENS names can be used to store any token or NFT along with addresses. It is the first of its kind to transfer the domain name services to web3.
Recently, the ENS chart displayed a surge of over 30% with the anticipation of the v2 upgrade. Meanwhile, it displayed an overall surge in the active addresses along with a decline in the overall fees. Read on to learn what exactly is the ENS v2 upgrade.
What Is ENS v2 Upgrade and What Changes Will it Bring?
Ethereum Name Service (ENS) is on the brink of a significant transformation with ENSv2. The upgrade is expected to enhance scalability, affordability, and functionality while maintaining the core principles of decentralization and user ownership.
Key Points of ENSv2:
– Ownership Preservation: Existing ENS name holders need not worry. Their names remain under their control without any impact on ownership rights during the transition to ENSv2.
– Dual-Layer Integration: ENSv2 introduces a dual-layer approach where all .eth name registrations occur on Layer 2 (L2) networks. Users can seamlessly interact between L1 and L2 through efficient message passing protocols or third-party bridges.
– Migration Flexibility: Users have the choice to migrate their names to ENSv2 or continue using them on L1 Ethereum indefinitely. The migration process will be user-friendly, ensuring a smooth transition.
– Decentralization and Security: ENSv2 maintains the decentralized nature of the protocol, ensuring names remain secure and unruggable. Careful consideration is given to the selection of L2 solutions to preserve platform neutrality and trust minimization.
– Cost Efficiency: While specific costs may vary, ENS Labs aims to provide cost-effective options for name registration and renewal, leveraging the advantages of L2 networks.
– Enhanced Functionality: Beyond gas cost savings, ENSv2 introduces enhanced flexibility and new functionalities, empowering users with greater control over their name management.
– Timeline and Roadmap: The timeline and the specific launch date for the upgrade is in the development phase.
ENSv2 marks a pivotal moment for ENS while aligning with Ethereum’s evolution towards scalability and user accessibility.
Are there any Other Factors that Could Explain the ENS Price Rise?
ENS observed a strong inflow in the CEX on June 30th, 2024 and the price saw a spike since then. The overall revenue of the protocol declined over 16.6% in June. Despite that drop, the overall volume of ENS rose by 45% last month.
Source Defillama
At press time, ENS’s P/F ratio or P/S ratio were relatively high in its category. The overall token liquidity was consolidating near $4.5 Million.
Futures volume surged by 174% to the high of $1.2 Billion. Meanwhile, the overall OI rose 68.15% in the past 24 hours. The OI-weighted funding rate surged 200% in the last 24 hours.
ENS price was rising amid the developments surrounding the upcoming upgrade which does not have a timeline. Momentum swings could appear, corresponding to the changes in active addresses or overall transactions on the protocol. Basically, a surge in these metrics could result in a price surge.
Meta Data; ENS price saw a surge of 30% due to the upcoming v2 upgrade. OI and Futures data of ENS also observed a huge rise.
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Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
