Ethereum Name Service (ENS) makes headlines in the crypto world: The price has risen an impressive 41% in the last 24 hours to reach $35. But what is behind this sudden increase? Is it a new feature, increased adoption, or just market hype? In this article on the ENS price forecast, we analyze the reasons for the increase and take a look at the possible future. Let’s go!
How has the Ethereum Name Service (ENS) price developed recently?
ENS/USD Tages-Chart – TradingView
The current price of Ethereum Name Service (ENS) is at $35.23, with a 24-hour trading volume of $4.56 billion. The market capitalization has reached $1.16 billion, representing a market dominance of 0.03%. In the last 24 hours, the ENS price has risen by an impressive 45.67%.
ENS price reached its all-time high of $83.40 on November 11, 2021, while its lowest point was recorded on October 20, 2023 at $6.69. After this low, ENS reached a high of $37.16. Market sentiment around ENS remains optimistic, with a reading of 77 on the Fear & Greed Index, signaling “Extreme Greed.”
Currently, ENS’s circulating supply is 33.06 million tokens out of a maximum of 100 million. The annual inflation rate of the supply is 9.70%, with 2.92 million new ENS tokens last year.
Why did the Ethereum Name Service (ENS) price rise?
The strong one Increase in the ENS price is driven by a combination of high on-chain activity, positive market sentiment and key support from Coinbase CEO Brian Armstrong. These factors have positioned ENS as an important building block in the growing decentralized identity ecosystem, strengthening investor confidence and market demand.
Latest on-chain data show a significant increase in both transaction count and token speed since the end of October. These metrics illustrate ENS’ increasing usage and adoption within its ecosystem.
The transaction count, which measures the number of unique daily network transactions, shows growing user activity and trust in the Ethereum Name Service. At the same time, the increasing token velocity, which shows how often the token changes hands, points to its increasing role in daily blockchain interactions. Together, these metrics paint a picture of a robust and active network that lays the foundation for sustainable price growth.
Another positive factor is the 90-day market value to realized value ratio (MVRV), which remains positive. This ratio suggests that ENS holders are experiencing unrealized gains, inhibiting willingness to sell and encouraging optimism for further gains. This positive sentiment adds to the token’s bullish momentum as investors increasingly view ENS as a long-term valuable asset.
A key impetus for the recent ENS rise was the support of Coinbase CEO Brian Armstrong. He publicly described ENS as a crucial piece in the puzzle of decentralized identity. Armstrong’s statement “The Internet of Money is becoming a reality” highlights the transformative potential of blockchain-based identities, with ENS playing a key role. By linking user-friendly domain names to Ethereum addresses, ENS simplifies blockchain interactions, making it an important tool for mass adoption.
Armstrong’s vision positions ENS as part of a broader ecosystem that is essential to consumer benefit. Together with solutions such as smart wallets to reduce barriers to entry and stablecoins such as USDC for stable transactions, ENS provides the identity layer that seamlessly connects users to decentralized applications. This endorsement from a prominent industry leader not only validated the utility of ENS, but also attracted new interest from investors and developers looking to capitalize on its growing relevance.
What’s next for ENS?
The combination of increasing on-chain activity and strategic positioning within the blockchain ecosystem suggests a positive future for ENS. The recognition from the Coinbase CEO has reignited interest and attracted both private and institutional players.
As the infrastructure for the “Internet of Money” continues to develop, ENS is likely to see further adoption and continue its appreciation.
However, ENS’ growth is not without challenges. Macroeconomic factors such as market fluctuations or changes in investor sentiment could influence price dynamics. Additionally, competition from other decentralized identity solutions could impact ENS’s long-term dominance.
Ethereum Name Service’s price rise reflects its growing importance in the blockchain ecosystem, supported by strong on-chain metrics and groundbreaking support from Coinbase CEO Brian Armstrong. As an important enabler for decentralized identity, ENS benefits from increasing network activity and increasing investor interest.
With its established role in the foundations of blockchain infrastructure, ENS is well positioned for further growth as blockchain adoption continues to advance. However, maintaining its momentum requires continuous innovation and a favorable market environment.
