Ethereum Name Service (ENS) Surges 7.6% Amidst Market Downturn: What’s Driving the Growth?
The Ethereum Name Service (ENS) has experienced a significant surge of 7.6% in the past day, making it the top gainer among the largest 100 crypto assets despite a general downturn in the global crypto market. At the time of writing, ENS was trading at $27.32, showing a 4.4% increase in the last 24 hours.
With a circulating supply of 32.8 million ENS, the project’s market cap now stands at $896 million. However, ENS is still down 68% from its all-time high of $85.69 achieved on November 11, 2021. The daily trading volume for ENS has also surged by 86%, reaching approximately $234 million.
Over the past year, ENS has seen a remarkable surge of over 185%, outperforming both Ethereum and Bitcoin, which recorded gains of 84% and 122%, respectively. ENS operates as a decentralized system on the Ethereum blockchain, allowing users to assign easy-to-remember names like “jake.eth” to various digital identifiers.
Ethereum co-founder Vitalik Buterin has emphasized the importance of integrating ENS domains with layer-2 blockchains, advocating for the adoption of trustless, Merkle-proof-based CCIP resolvers to facilitate the registration and readability of ENS subdomains directly on layer-2 solutions.
The recent surge in ENS coincides with the SEC’s approval of the first-ever spot Ethereum ETFs in the U.S., set to begin trading on July 23. Despite a drop in Ethereum’s price by 1.13% in the last 24 hours, ENS continues to attract attention from retail investors who view it as a cheaper alternative to Ethereum.
As the global crypto market experiences a 1.7% drop, currently standing at $2.41 trillion, the rise of ENS showcases its potential in the evolving crypto landscape and its appeal to investors seeking alternative opportunities within the Ethereum ecosystem.