Why did the price of ENS fall?
Ethereum Name Service (ENS) dropped 0.74% in the last 24 hours, underperforming the overall crypto market, which rose by 0.12%. This decline comes amid mixed technical signals and a significant token transfer by the ENS team to exchanges.
- Team Wallet Activity – The ENS team moved over $4 million worth of tokens to exchanges, raising concerns about potential selling.
- Technical Resistance – ENS struggled to break through a key price level at $24.78, facing downward pressure.
- Market Sentiment – Mixed social media opinions and trading data pointed to cautious or negative outlooks.
Deep Dive
1. Team Wallet Activity (Bearish Impact)
Overview:
On August 11, 2025, the ENS team transferred about 141,937 ENS tokens, valued at roughly $4.02 million, to the FalconX and Coinbase exchanges (BlockBeats). Such transfers often hint at upcoming selling since teams typically deposit tokens to exchanges when planning liquidity events or sales.
What this means:
When large amounts of tokens enter exchanges, it increases the supply available for sale, which can put downward pressure on the price. Given that ENS has already dropped 14.58% over the past 60 days, this move added to the negative sentiment. However, the team has not officially stated their intentions, so the situation remains uncertain.
What to watch:
Look for more wallet movements or official announcements clarifying whether these tokens will be used for ecosystem development or sold for profit.
2. Technical Resistance (Mixed Impact)
Overview:
ENS is facing resistance at the 50% Fibonacci retracement level, around $24.78, and is trading below its 30-day simple moving average (SMA) of $23.73. The MACD indicator shows a slight positive trend (+0.12), but the Relative Strength Index (RSI) at 46.94 suggests neutral momentum.
What this means:
Traders are cautious near these key price points, often selling when prices rise (“sell the rally”). The current support level is at $23.28; if the price falls below this, it could trigger further declines toward $22.93, another important Fibonacci level.
3. Market Sentiment (Bearish Bias)
Overview:
Social media discussions highlighted bearish setups, such as a “liquidity magnet” at $16.03 (CoinMarketCap), while data from derivatives markets showed that short positions dominate, with 55.45% of top traders betting on price drops.
What this means:
Fear of further price drops among retail traders and protective strategies by institutional traders are creating downward pressure. However, spot trading volume decreased by 13% compared to the previous day, indicating that the selling momentum might not be very strong.
Conclusion
The recent dip in ENS price reflects a combination of uncertainty from the team’s token transfers, mixed technical signals, and cautious trading behavior. While the project’s long-term vision as a key player in Web3 identity remains solid, there are short-term risks near important support levels.
Key watch: Will ENS hold the $23.28 support level, or will bearish momentum push it down toward the $22 to $21.56 range? Keep an eye on token inflows to exchanges for signs of ongoing selling pressure.
What could affect the price of ENS?
Ethereum Name Service (ENS) is navigating a balance between growing Web3 adoption and risks from increasing token supply.
- Web3 Identity Growth – New partnerships and Layer 2 network integrations are making ENS more useful.
- Token Unlocks & Sales – Over $453 million worth of tokens are unlocking this week, with team transfers to exchanges that could increase selling pressure.
- DAO-Led Innovation – Funding for development teams may speed up important upgrades to the ENS platform.
Deep Dive
1. Web3 Identity Growth (Positive Outlook)
Overview: ENS is becoming more popular as it integrates with wallets like Gemini (offering free .eth subdomains), exchanges such as Bitso, and Layer 2 solutions like Linea. There are over 750,000 active .base.eth names, and the upcoming ENSv2 upgrade aims to move to cheaper Layer 2 networks, potentially cutting transaction fees by about 70% (CCN).
What this means: As ENS becomes easier and cheaper to use across different blockchain networks, demand for .eth domain registrations—which are already up 35% year-over-year—could increase. This would also boost staking activity and protocol revenue, potentially raising ENS’s market value beyond its current $854 million if adoption grows faster than new tokens enter circulation.
2. Token Unlocks & Sales (Negative Outlook)
Overview: This week, $453 million worth of ENS tokens are unlocking (XT Blog), coinciding with a $4.02 million transfer of tokens from the ENS team to exchanges like Binance (Binance Square). Currently, only 37% of the maximum 100 million tokens are in circulation, so this increase could dilute value.
What this means: The influx of tokens available for sale might put downward pressure on ENS’s price, testing support levels around $21.56. However, large holders such as Trend Research have bought 20.3 million ENS tokens recently, which might help absorb some selling pressure.
3. DAO-Led Innovation (Mixed Outlook)
Overview: The ENS decentralized autonomous organization (DAO) has funded eight teams focused on improving scalability and cross-chain compatibility. Proposed features include social recovery options for lost wallets and integration with traditional Domain Name System (DNS).
What this means: If these upgrades succeed, ENS could become the go-to naming system for Web3. However, delays and challenges in implementing these improvements—like the Layer 2 migration planned for ENSv2—could slow momentum and affect short-term confidence.
Conclusion
ENS’s future price depends on balancing growing demand from adoption with the risks posed by increasing token supply. While Layer 2 integrations and new identity features offer promising long-term growth, traders should watch for token sales following unlocks and decisions made by the DAO. The key question remains: can ENS maintain its position as Web3’s “digital passport” amid competition from projects like Unstoppable Domains?
What are people saying about ENS?
ENS holders are divided between hopes for a price breakout and fears of a correction, alongside growing excitement about its real-world uses. Here’s what’s trending:
- Technical traders debate a $32 breakout versus a $16 drop
- Partnership with Gemini boosts optimism around Web3 identity
- Plans for ENSv2 and moving to Layer 2 spark adoption expectations
Deep Dive
1. @CoinMarketCap: Bullish technical setup targets $38 bullish
"If ENS holds this zone, the next leg up might surprise everyone... Targets: $32.01 → $38.57"
– CoinMarketCap Community (Aug 20, 2025 · 12:08 PM UTC)
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What this means: This analysis suggests that ENS could increase by about 66% from its current price ($23.09) if it stays above a key support level at $21.67. The positive outlook depends on strong signals from longer-term charts and market liquidity.
2. @Gemini: Wallet recovery via ENS subnames bullish
"Each Gemini wallet gets a gemini.eth subname for simplified recovery and cross-chain interactions"
– Gemini (Jul 31, 2025 · 3M followers · 1.2M impressions)
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What this means: Gemini’s integration, with its 40 million+ users, could significantly increase ENS adoption as a Web3 identity layer. However, it’s important to watch actual user activity to see how much this drives real-world use.
3. @ensdomains: ENSv2 and L2 expansion plans neutral
"ENSv2 will migrate critical components to L2 chains... reducing gas fees by ~92% in testing"
– ENS Domains (Aug 14, 2025 · 450K followers · 890K impressions)
View original post
What this means: Moving to Layer 2 chains could make ENS more affordable and accessible by cutting transaction fees dramatically. But since the timeline is vague (just “2025”), there’s some uncertainty about when and how smoothly this will happen.
Conclusion
Opinions on ENS are mixed. Technical traders see potential for big price swings, while ongoing developments point to growing usefulness as Ethereum’s naming system. Keep an eye on the $32 resistance level: breaking above it could confirm a bullish trend, while failing to do so might lead to a price drop. Either way, ENS remains a key player in the future of Web3 identity.
What is the latest news about ENS?
Ethereum Name Service (ENS) is making moves with new partnerships and token activities as Web3 identity becomes more popular. Here are the key updates:
- Linea Consortium Role (September 11, 2025) – ENS joins the governance team for Ethereum’s Layer 2 network, increasing its influence in the ecosystem.
- Gemini Wallet Integration (August 14, 2025) – Gemini wallet now offers free ENS subdomains, making it easier for millions to use Web3.
- PayPal/Venmo Case Study (August 5, 2025) – ENS adoption grows as major payment platforms start using it.
In-Depth Look
1. Linea Consortium Role (September 11, 2025)
What happened:
ENS Domains became a governing member of the Linea Consortium, a group that manages ConsenSys’ Ethereum Layer 2 network. Linea recently launched its token, dedicating 85% of the supply to growing the ecosystem. ENS will help guide decentralized governance and long-term plans.
Why it matters:
This is positive for ENS because it strengthens its connection with Ethereum’s scaling solutions, which could increase demand for .eth domain names as more people use Linea. However, since Linea positions itself as an “Ethereum challenger,” this might create some tension with ENS’s close ties to Ethereum’s main network.
(Bit2Me News)
2. Gemini Wallet Integration (August 14, 2025)
What happened:
Gemini introduced a new self-custody wallet that automatically gives users free ENS subdomains (like you.gemini.eth). This makes sending crypto and recovering accounts easier. The feature works across Ethereum and Layer 2 networks such as Arbitrum and Polygon.
Why it matters:
This is a neutral update with potential benefits. ENS gets exposure to Gemini’s large institutional user base, which could lead to more adoption. However, because subdomains are distributed through a centralized exchange, it might weaken ENS’s commitment to decentralization.
(The Block)
3. PayPal/Venmo Case Study (August 5, 2025)
What happened:
ENS published a case study showing how PayPal and Venmo are using ENS to create easy-to-read addresses, which helps reduce mistakes in transactions. More than 15% of transfers involving the PYUSD stablecoin now use ENS names.
Why it matters:
This is a strong positive sign because it shows ENS is useful beyond just crypto enthusiasts. Real-world payment platforms adopting ENS could increase transaction volume and encourage users to renew their domain names, boosting ENS’s revenue.
(ENS Domains)
Conclusion
ENS is solidifying its position as the go-to identity layer for Web3 by forming key partnerships with Layer 2 networks, exchanges, and mainstream payment services. While upcoming token unlocks ($453 million in early September) and team token transfers to exchanges may cause short-term price swings, the long-term growth driven by real-world use cases looks promising. The big question now is whether ENS will expand into social media or enterprise DNS services next.
What is expected in the development of ENS?
The Ethereum Name Service (ENS) roadmap focuses on making the system faster, easier to use, and more decentralized. Key upcoming steps include:
- ENSv2 Migration (Q4 2025) – Moving to Layer 2 solutions to lower costs and speed up transactions.
- Namechain Integration (2026) – Creating a dedicated Layer 2 network just for ENS operations.
- Social Recovery & Subnames (Ongoing) – Adding features to help users recover lost names and use subdomains more effectively.
Detailed Overview
1. ENSv2 Migration (Q4 2025)
What’s happening: ENS Labs plans to move core functions of ENS to a Layer 2 blockchain, such as Optimism or Arbitrum. This change aims to cut transaction fees by about 70% and make processes faster. The update will also redesign how domain names and subdomains are managed, giving users more control.
Why it matters: Lower fees and faster transactions could attract more users and businesses to ENS. However, there are risks like delays in choosing the right Layer 2 partner or potential bugs during the migration.
2. Namechain Integration (2026)
What’s happening: ENS is partnering with Consensys’ Linea to build “Namechain,” a dedicated Layer 2 blockchain for handling .eth domain registrations, renewals, and lookups. This will reduce congestion on the main Ethereum network.
Why it matters: This specialized network could make ENS more efficient and scalable. But there’s a chance that having multiple Layer 2 solutions could split the community and reduce overall network benefits. Success depends on how well these systems work together.
3. Social Recovery & Subnames (Ongoing)
What’s happening: ENS is testing social recovery options, where trusted contacts (guardians) can help users regain access to lost names. They’re also expanding the use of subnames, like Gemini’s gemini.eth subdomains, which can help with things like wallet recovery.
Why it matters: These features make ENS easier and safer for everyday users, encouraging wider adoption. However, working with centralized partners like Gemini might challenge ENS’s goal of staying fully decentralized.
Conclusion
ENS is working to improve scalability through Layer 2 migration, build specialized infrastructure with Namechain, and enhance user experience with recovery and subname features. These efforts aim to strengthen ENS’s position as the identity system for Web3. While there are technical and decentralization challenges ahead, these upgrades support the growth of the Ethereum ecosystem.
The key question remains: How will ENS maintain decentralization while partnering with centralized entities like Gemini to avoid losing its core principles?
What updates are there in the ENS code base?
Ethereum Name Service (ENS) has made important upgrades and added new features recently to improve its platform.
- ENSv2 & Namechain L2 Launch (June 2025) – Moving key functions to a dedicated Ethereum Layer 2 (L2) to make it faster and cheaper.
- Email-as-ENS Integration (August 2025) – Linking email addresses to .eth names securely using zero-knowledge proofs.
- Subname Management Upgrade (July 2025) – Easier creation of subdomains with support across multiple blockchains.
Deep Dive
1. ENSv2 & Namechain L2 Launch (June 2025)
What happened: ENS shifted its registry system to a new Ethereum Layer 2 solution called "Namechain." This change cuts transaction fees by about 90% and allows ENS to work with other blockchains like Solana and Bitcoin.
The upgrade separates domain ownership (still on Ethereum’s main network) from the process that resolves those domains (now on Namechain). It uses a technology called optimistic rollups to bundle transactions efficiently. Developers can also create custom resolver contracts with better support for extra data.
Why it matters:
This is a big win for ENS users because it lowers costs and opens up new possibilities for cross-chain use. (Source)
2. Email-as-ENS Integration (August 2025)
What happened: ENS teamed up with zkEmail to let users link their email addresses (like alice@gmail.eth) to their Ethereum wallets securely.
This uses zero-knowledge proofs (zk-SNARKs) to confirm email ownership without revealing private information. It’s built on a new standard called EIP-5821, which connects traditional internet domain names (DNS) to ENS names while keeping privacy intact.
Why it matters:
This feature makes ENS more appealing to people familiar with regular email, helping bridge Web2 and Web3. However, it relies on trusted third-party validators. Since launch, over 750,000 .base.eth names have been registered. (Source)
3. Subname Management Upgrade (July 2025)
What happened: ENS improved how subdomains (like payroll.company.eth) are managed by allowing:
- Anyone to create subdomains without permission
- Registrations directly on Layer 2 networks like Base and Optimism
- Bulk operations using a new ERC-1155 Name Wrapper standard
Why it matters:
This upgrade encouraged more businesses to adopt ENS, with institutional use growing 214%. For example, Gemini uses subdomains for wallet recovery. On the downside, the rise in spam subdomains has created new moderation challenges. (Source)
Conclusion
ENS is steadily becoming the go-to identity system for Web3 by improving its technology, expanding how it can be used, and making core features easier to manage. With daily registrations up 38% since June, the big question is whether ENS can keep growing as Ethereum’s scaling solutions continue to develop.