Market anticipates ENSv2 upgrade leading to a 30 surge in Ethereum Name Service ENS
Ethereum Name Service (ENS) has experienced a significant surge, climbing 30% within the past 24 hours to achieve a price level not seen since January 2022. According to CoinMarketCap (CMC), ENS is currently trading at $32.61, marking a 27.7% increase in the last day. With a circulating supply of 31.6 million ENS tokens, the project’s market capitalization has now surpassed $1 billion.
Despite this impressive rise, ENS remains 62% below its all-time high of $85.69, which was recorded on November 11, 2021. The daily trading volume for ENS has also seen a substantial increase, up 64% to around $264 million.
Over the past year, ENS has surged by more than 250%, outpacing gains in other major cryptocurrencies such as Ethereum, which rose by 81%, and Bitcoin, which increased by 108%.
ENS is a decentralized naming system built on the Ethereum blockchain, allowing users to register human-readable names like “jenny.eth” and link them to various identifiers such as addresses, content hashes, and metadata. Unlike traditional Domain Name Systems (DNS), ENS domains are governed by smart contracts and a Decentralized Autonomous Organization (DAO), ensuring they remain free from centralized control.
The Ethereum Name Service is compatible with numerous blockchains, including prominent ones like Optimism, Solana, Arbitrum, and Base.
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The recent rise in ENS prices comes as investors anticipate the forthcoming ENSv2 upgrade, which aims to enhance scalability, affordability, and flexibility. The updated roadmap indicates that developers are focusing on upgrading name resolution and managing reserve resolution. Although the exact timing of the V2 upgrade has not been disclosed, the roadmap suggests it could take a few months to complete.
Additionally, the price surge on Monday was influenced by the performance of other cryptocurrencies. Bitcoin rebounded from $60,000 on June 29 to $63,500, its highest level in nearly two weeks, which helped boost the overall crypto market. Ethereum also saw a rise, exceeding $3,500.
There are also indications that the SEC may approve a spot Ethereum ETF this quarter. While the agency has returned the S1 filings to the issuers, signs point towards a potential approval later this quarter. If this happens, the ENS token is expected to perform well.
Market analyst Javon Marks observed that the recent price surge has pushed ENS to new highs, setting a target of $76.12. If the current trend continues, ENS could potentially increase by another 138%. Another analyst, Matthew Hyland, is even more optimistic, predicting that ENS could reach $120 if the upward momentum persists.
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