ENS introduces Layer 2 interoperability for Ethereum ($ETH).
ENS Labs has recently announced their plans to introduce Layer 2 (L2) interoperability for ENS domains. This implementation aims to enhance the performance, scalability, and cost efficiency of managing ENS domains for users. ENS introduces Layer 2 interoperability for Ethereum ($ETH).
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The decentralized domain name system is implementing off-chain resolvers by utilizing an ENS off-chain registrar contract and the services of Coinbase' cb.id, Lens Protocol, and OptiNames on the Optimism network. This move comes as the L2 ecosystem experiences a surge in projects and protocols.
According to L2Beat data, the total value of assets locked on L2 service providers has increased by over 190% in the past year, currently standing at $9.78 billion. Arbitrum leads the market with a 60% share and a total value locked (TVL) of $5.87 billion.
ENS domain name registrations grew significantly in Q2 2021. Monthly ENS domain name registrations totaled 79,463 last quarter, according to Dune Analytics data. June, which saw a significant drop in gas fees on the Ethereum Network, recorded the highest number of registrations during the quarter with 35,932 ENS name registrations.
While .eth name registrations increased at the end of Q2, primary ENS name registrations experienced a notable decline. A primary ENS name is a unique domain name registered and associated with an Ethereum address on the ENS platform. Despite a 21% dip in revenue during this period, ENS registered a cumulative profit of $4.8 million between April 1 and June 30. Token Terminal reports that ENS' annualized revenue has decreased by 5.11%.
The daily price performance chart of ENS shows an increase in ENS token accumulation since mid-June, along with a corresponding 22% value growth. The Relative Strength Index (RSI) and Money Flow Index (MFI) indicators are on an upward trajectory, indicating a bullish run.
The Ethereum Name Service (ENS) enhances the user-friendliness of the Ethereum network by replacing complex blockchain addresses with easy-to-remember names. With the latest move of introducing Layer 2 interoperability, ENS Labs takes a significant stride towards improving the operational efficiency and cost-effectiveness of managing ENS domains.
This development comes amidst a growing trend of Layer 2 adoption across the blockchain sphere, an effort to counteract the scalability and performance bottlenecks often associated with the Ethereum mainnet. By enabling Layer 2 solutions, ENS keeps pace with industry trends and reaffirms its commitment to user experience and network efficiency.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.