An Ethereum (ETH) based altcoin has experienced a surge in value following a statement by Ethereum’s founder, Vitalik Buterin, emphasizing the project’s critical importance to the cryptocurrency ecosystem. Buterin suggested that all Layer 2 (L2) projects should integrate with the Ethereum Name Service (ENS), a platform that allows users to purchase a “domain name” on the Ethereum blockchain instead of using alphanumeric wallet addresses for transactions.
According to data from blockchain analytics platform Dune Analytics, there are around 2.14 million active ENS names and over 801,000 unique participants. L2 projects like Optimism (OP) and Arbitrum (ARB) are built on top of Ethereum to enhance scalability and reduce costs. The Cross-Chain Interoperability Protocol (CCIP) is a protocol that allows for the resolution of information on or off the Ethereum blockchain from the Ethereum Virtual Machine (EVM).
ENS’s value saw a significant jump of nearly 60% to $14.20 after Buterin’s social media post, up from its 24-hour low of $8.88. The price has since retracted some of those gains, trading at $12.82 at the time of writing. The Ethereum-based altcoin’s value increase is attributed to Buterin’s proposal for integration with ENS.
Buterin’s advocacy for L2 project integration with ENS could bring innovation and a user-friendly experience to the Ethereum ecosystem. ENS provides a platform for “domain names” that can be used in place of alphanumeric wallet addresses. The integration of L2 projects with this platform is seen as a significant step forward for user accessibility within the Ethereum network.