Ethereum Name Service jumps 7% on day spot Ethereum ETFs launch

Ethereum Name Service has emerged as the biggest gainer among the top 100 crypto assets, rising by 7.6% in the past day despite the overall decline in the global cryptocurrency market.

At the time of writing, Ethereum Name Service (ENS) was trading at $27.32, marking a 4.4% increase over the past 24 hours, according to data from crypto.news. With a circulating supply of 32.8 million ENS, the project has a market cap of $896 million.

ENS price chart | Source: TradingView

Despite this recent price increase, ENS remains 68% off its all-time high of $85.69 reached on November 11, 2021. Meanwhile, ENS’ daily trading volume increased by 86% to approximately $234 million.

Over the past year, ENS has gained over 185%, while Ethereum and Bitcoin have gained 84% and 122% respectively.

The Ethereum Name Service operates as a decentralized system on the Ethereum blockchain, allowing users to assign easy-to-remember names, such as “jake.eth”, to various digital identifiers, including addresses and metadata.

Managed by smart contracts and a decentralized autonomous organization (DAO), this system represents a shift from traditional, centralized domain name systems.

Ethereum co-founder Vitalik Buterin recently highlighted the importance of integrating ENS domains with layer 2 blockchains.

Advocates for the adoption of trustless, Merkle proof-based CCIP resolvers to facilitate direct registration and readability of ENS subdomains in Layer-2 solutions, thereby reducing costs and highlighting their role in the evolving crypto landscape.

The recent surge in ENS coincides with the SEC approving the first spot Ethereum ETFs in the U.S. These ETFs are scheduled to begin trading today, July 23.

ENS’ price increase came despite the decline in Ethereum, which fell by 1.13% in the last 24 hours and was traded at $3,444 as of press time.

ENS are fundamentally different from Ethereum, but many retail investors see them as cheaper alternatives. As ETH gains popularity among institutions, retail investors may shift their focus to low-capitalization ‘Ethereum’ coins like ENS.

The global cryptocurrency market also fell 1.7 percent in the last 24 hours to $2.41 trillion.