Ethereum (ETH) based altcoin experienced a value surge after ETH founder Vitalik Buterin stated the project was crucial for the cryptocurrency ecosystem.
Innovation for Layer 2 Projects
Vitalik Buterin, through social media platform X, stated 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. These domain names can be used to send and receive money. Vitalik Buterin said the following:
All L2s (trustless, merkle-proof based) should operate on CCIP resolvers, so we can directly register, update, and read ENS subdomains on L2s. ENS is very important, it needs to be affordable!
According to data from blockchain data platform Dune Analytics, there are approximately 2.14 million active ENS names and over 801,000 unique participants. Layer-2 projects like Optimism (OP) or Arbitrum (ARB) are built on top of Ethereum to increase scalability and reduce costs. The CCIP or cross-chain interoperability protocol is a protocol that allows for the resolution of information on-chain or off-chain from the Ethereum Virtual Machine (EVM).
New Service from Ethereum
In the last 24 hours, ENS was trading at its lowest level of $8.88. After Buterin’s social media post, ENS nearly gained 60%, rising to $14.20. Since then, ENS has given up some of these gains and was trading at $12.82 at the time of writing. Consequently, the Ethereum-based altcoin gained value following Vitalik Buterin’s proposal for integration with the Ethereum Name Service (ENS).
Buterin, in his statements through social media platform X, mentioned that layer 2 (L2) projects need to integrate with ENS. ENS offers a “domain name” platform that can be used instead of alphanumeric wallet addresses. The integration of Layer-2 projects with this platform could bring innovation and a user-friendly experience to the Ethereum ecosystem.
