What is expected in the development of ENS?
The Ethereum Name Service (ENS) roadmap is focused on making the platform faster, more customizable, and compatible with multiple blockchains.
- ENSv2 Layer 2 Migration (Q4 2025) – Moving core functions to Layer 2 to lower costs and speed up name registrations.
- Hierarchical Registry System (Q4 2025) – Allowing users to create and control detailed subdomains with transferable ownership.
- Multi-Chain Interoperability (2026) – Enabling .eth names to work seamlessly across different blockchain networks.
Deep Dive
1. ENSv2 Layer 2 Migration (Q4 2025)
Overview:
ENS Labs plans to move key parts of the ENS protocol to a Layer 2 network, which is currently being researched (ENSv2 proposal). This change aims to cut transaction fees by about 90% compared to the Ethereum main network, bringing registration costs to under $1.
What this means:
This is good news for users because lower fees could lead to more people registering .eth names (there are already over 2 million registered). However, there are risks like delays in finalizing the Layer 2 solution and challenges in moving smart contracts.
2. Hierarchical Registry System (Q4 2025)
Overview:
ENS will introduce a new system that lets users create custom subdomains (for example, wallet.yourname.eth). Each subdomain will be its own NFT, meaning ownership can be transferred easily, thanks to the Name Wrapper.
What this means:
This feature could increase the usefulness of ENS. For example, companies like Gemini already use subdomains for wallet recovery (you.gemini.eth). On the downside, if the system is too complicated, it might discourage everyday users.
3. Multi-Chain Interoperability (2026)
Overview:
ENSv2 will use CCIP-Read Gateways to allow .eth names to be recognized on other blockchains like Bitcoin and Solana. This builds on Layer 2 partnerships such as Base, which has over 750,000 .base.eth names registered.
What this means:
This could make ENS a universal identity system for Web3, but its success depends on how well wallets and exchanges support it.
Conclusion
ENS is evolving from a service focused only on Ethereum to a multi-chain identity platform by scaling with Layer 2 and improving its architecture. While there are technical challenges ahead, a successful rollout could establish ENS as the key naming system for Web3. The big question is whether the lower fees from ENSv2 will spark a new surge in registrations as more activity moves to Layer 2 networks.
What updates are there in the ENS code base?
The Ethereum Name Service (ENS) is making key updates focused on scaling through Layer 2 (L2) migration and improving user experience.
- ENSv2 & Namechain L2 (June 30, 2025) – Moving core functions to a dedicated Layer 2 to make transactions faster and cheaper.
- Subname Creation Tools (July 23, 2025) – Easier management of subdomains through the ENS Manager App.
- Gemini Wallet Integration (August 14, 2025) – ENS-powered recovery features added to Gemini’s smart wallets.
Deep Dive
1. ENSv2 & Namechain L2 (June 30, 2025)
Overview: ENSv2 moves important parts of ENS to Namechain, a Layer 2 solution built on Ethereum using Arbitrum Orbit technology. This change aims to lower transaction fees (gas fees) and speed up operations.
By separating ENS’s main functions from the Ethereum mainnet, Namechain can process multiple registrations and updates in batches. Namechain will handle domain resolution and subdomain management, while the Ethereum mainnet will still confirm ownership through secure hashed commitments.
What this means: This is a positive development for ENS because it reduces costs for users, which is essential for wider adoption. It also positions ENS as a flexible identity system that can grow alongside Ethereum’s scaling solutions. (Source)
2. Subname Creation Tools (July 23, 2025)
Overview: The ENS Manager App now allows users to create subdomains (like wallet.yourname.eth) with just one click. Users can also delegate control of these subdomains to other wallets.
The update includes a more efficient batch transaction system, so users can create subdomains and set related information (such as avatars and addresses) in just two steps instead of multiple approvals.
What this means: This update improves the user experience but doesn’t directly increase ENS adoption on its own. Wider use depends on other apps integrating these features. Still, it strengthens ENS as a useful tool for managing Web3 identities. (Source)
3. Gemini Wallet Integration (August 14, 2025)
Overview: Gemini’s new smart wallets automatically assign subnames under gemini.eth (for example, you.gemini.eth), using ENS to enable easy wallet recovery.
ENS resolvers link these subnames to wallet addresses, allowing users to recover their wallets through a social login process. This integration uses ENS’s off-chain resolution to reduce reliance on the Ethereum mainnet.
What this means: This is a strong positive for ENS because it demonstrates real-world, enterprise-level use cases. It also helps grow ENS adoption by connecting it to popular custodial wallet platforms. (Source)
Conclusion
ENS is evolving into a multi-chain identity system that balances decentralization with practical solutions through Layer 2 technologies and partnerships. The migration to Namechain could boost ENS’s use in applications that require frequent transactions. The big question is whether Ethereum’s Layer 2 ecosystem will adopt ENS as the standard for naming and identity.
Why did the price of ENS fall?
Ethereum Name Service (ENS) dropped 2.5% in the last 24 hours, adding to a 15% decline over the past week. This drop is driven by negative technical signals, token unlocks increasing sell pressure, and a generally weak crypto market.
- Technical breakdown – ENS price fell below important support levels, showing bearish momentum.
- Token unlock pressure – $7.3 million worth of tokens were unlocked daily, adding more tokens for sale.
- Market-wide risk-off – The Crypto Fear & Greed Index at 34 (“Fear”) lowered demand for altcoins like ENS.
Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview: ENS price fell below its 30-day simple moving average (SMA) at $22.67 and its 200-day exponential moving average (EMA) at $23.49. The Relative Strength Index (RSI) was at 33.95, close to oversold levels, and the MACD histogram at -0.32 confirmed downward momentum.
What this means: Traders sold as the price dropped below the weekly SMA of $20.78, which had previously acted as a support level. The next important support is at $19.45, the low from September 25.
Key watch: Whether buyers step in to defend the $19.45 level, which matches the 78.6% Fibonacci retracement—a common point where prices may bounce back.
2. Token Unlock Pressure (Bearish Impact)
Overview: ENS had $7.33 million worth of tokens unlocked daily, representing 0.02% of the circulating supply. This is part of scheduled token releases following a larger $453 million unlock across the crypto market starting September 15 (Cryptopotato).
What this means: Token unlocks increase the number of tokens available to sell, especially during times when trading volume is low. ENS’s 24-hour trading volume dropped 34% to $35.7 million, making the price more sensitive to new tokens entering the market.
3. Market-Wide Risk Aversion (Mixed Impact)
Overview: The Crypto Fear & Greed Index remained at 34 (“Fear”) on September 28. The total crypto market capitalization fell slightly by 0.18%, and altcoin dominance decreased by 0.11% over the week.
What this means: Investors preferred Bitcoin (BTC), which saw a slight increase in dominance (+0.17% daily), over mid-sized altcoins like ENS. ENS’s market cap dominance is just 0.019%, making it vulnerable to shifts in overall market sentiment.
Conclusion
ENS’s recent price drop is due to a combination of technical weakness, increased token supply from unlocks, and cautious market sentiment. While ENS continues to play a key role in Ethereum’s identity system, short-term traders are focused on managing risks.
Key watch: Keep an eye on whether Ethereum’s new AI-focused “dAI Team” initiative (The Defiant) will renew interest in ENS as a Web3 identity platform. Also, watch the $19.45 support level for signs that buyers are stepping back in.
What could affect the price of ENS?
Ethereum Name Service (ENS) is currently balancing between factors that could boost its growth and challenges that might slow it down.
- ENSv2 & Layer 2 Scaling – Upcoming updates may cut transaction fees by up to 90%, encouraging more users.
- Big Investors & Exchange Activity – Large purchases worth $5.5 million contrast with $4 million moving to exchanges, showing mixed market signals.
- Competition in Web3 Identity – PayPal and Venmo are integrating ENS, but other naming services are also competing for users.
Deep Dive
1. Protocol Upgrades & Adoption (Positive Outlook)
Overview:
ENSv2 plans to move its core functions to Linea, a Layer 2 (L2) scaling solution, by the fourth quarter of 2025 (ENSv2 Hub). This change aims to reduce transaction fees from about $5 to just 50 cents. Recent partnerships with Gemini (which allows wallet recovery using .eth names) and Base App (which has over 750,000 .base.eth handles) show that ENS is becoming more useful.
What this means:
Lower fees could lead to more people registering .eth names (currently around 2 million) and increase participation in decentralized governance. Past data shows that major partnerships, like with PayPal in July 2025, led to price jumps of about 19% (source).
2. Whale Activity & Exchange Flows (Mixed Signals)
Overview:
In July 2025, a group called Trend Research bought 203,000 ENS tokens worth $5.5 million. Meanwhile, in August, about 141,000 ENS tokens valued at $4 million were moved to exchanges like Coinbase and FalconX. The total open interest in ENS derivatives is $114 million, which is 47% lower than the peak in July.
What this means:
Large holders, who control 37% of the supply and have held their tokens for over a year, might help keep prices stable. However, tokens moving to exchanges could increase selling pressure. The 30-day Market Value to Realized Value (MVRV) ratio is -12%, indicating many holders are currently at a loss and may be reluctant to sell at the current price of $19.49.
3. Dependence on the Ethereum Ecosystem (Potential Risk)
Overview:
ENS’s revenue is closely linked to Ethereum’s gas fees, with a strong correlation (R²=0.82) over the past year. Ethereum still dominates the market with 57.9% share, but Layer 2 solutions like Linea are starting to shift activity away. ENS will need to prove its usefulness across multiple blockchain networks, not just Ethereum-compatible ones.
What this means:
If Ethereum’s price falls for a long time, fewer people might register .eth names—83% of ENS’s revenue in 2024 came during times when Ethereum’s price was rising. However, ENSv2’s plans to support multiple blockchains could reduce this risk over time.
Conclusion
ENS’s future price depends on successfully moving to Layer 2 and keeping its lead in the Web3 naming market, where it currently holds 61% of the share. Most trading volume since August has happened between $16 and $21, with $19.50 acting as a key support level. Holding above this price could mean investors are accumulating before the big upgrades in Q4.
Will the fee cuts from ENSv2 spark a new wave of .eth registrations, or will broader economic challenges overshadow these improvements?
What are people saying about ENS?
Conversations around Ethereum Name Service (ENS) are swinging between optimism about buying during price dips and caution due to profit-taking. Here’s what’s currently trending:
- Traders debate price targets ranging from $16 to $38 amid mixed technical signals.
- Institutions are making significant purchases, spending over $5.5 million on tokens despite recent price drops.
- Real-world use of ENS is growing quickly through partnerships with PayPal and Coinbase.
Deep Dive
1. Whale Accumulation Signals Long-Term Confidence
According to CryptoQuant, about 250,000 ENS tokens were withdrawn from exchanges in July — the largest amount since early 2024. Since then, there haven’t been major token deposits back to exchanges, indicating holders are holding onto their tokens rather than selling.
What this means: This is a positive sign for ENS because fewer tokens on exchanges can reduce price swings. However, the price has been relatively flat, dropping about 15% over the past week, which may test the patience of current holders.
2. $5.5 Million Strategic Buyback After Year-Long Pause
TrendResearch reports that institutions made their first major ENS purchase since 2024, spending between $18 and $21 per token. This move aligns with ENS’s plans to migrate to Layer 2 (L2) scaling solutions, which aim to improve transaction speed and reduce costs.
What this means: This is a cautiously optimistic sign. Institutional interest supports the idea that ENS has a strong role in the future of Web3 identity. However, the timing during a price low suggests these buyers are looking for value bargains.
3. ENS Enhances Wallet Recovery for Over 750,000 Users
ENS has partnered with Gemini to offer a new wallet recovery process that lets users regain access by entering their .eth name, avoiding the risks associated with losing seed phrases. This was highlighted by @ensdomains.
What this means: This is a positive development for ENS, as it improves user experience and could attract more mainstream users beyond just crypto enthusiasts. However, the token price hasn’t yet reflected this increased adoption.
Conclusion
The outlook for ENS is mixed. Technical traders are watching the $16 to $26 price range closely, seeing it as a critical zone. Meanwhile, institutions continue to buy at discounted prices. Keep an eye on the progress of the ENSv2 migration (which involves Layer 2 scaling) and the flow of tokens on and off exchanges for signs of renewed momentum. The key question remains: will ENS’s growing real-world use finally boost its price, or will broader market challenges keep it in a holding pattern?
What is the latest news about ENS?
ENS is advancing with AI integration, token unlocks, and Layer 2 (L2) partnerships as more people start using it. Here are the latest highlights:
- Ethereum’s AI Initiative (September 17, 2025) – ENS’s lead developer supports Ethereum’s plan to become the trusted platform for AI.
- Token Unlock Effects (September 15, 2025) – $7.33 million worth of ENS tokens entered the market during a weak price period.
- Linea’s Governance Update (September 10, 2025) – ENS joined a new L2 network consortium that avoids giving tokens to venture capitalists.
In-Depth Look
1. Ethereum’s AI Initiative (September 17, 2025)
What Happened
The Ethereum Foundation started a new team called the “dAI Team” to make Ethereum the main platform for coordinating AI agents. A key part of this plan is a new standard called ERC-8004, which would track AI reputation scores on the blockchain. Nick Johnson, ENS’s lead developer, highlighted the importance of decentralized identity systems to keep control away from big corporations.
Why It Matters
This is good news for ENS because decentralized identity tools like .eth domain names could become essential for AI agents working on Ethereum. However, other blockchains like Solana and NEAR are also pushing AI projects, which could affect how widely Ethereum and ENS are adopted. (The Defiant)
2. Token Unlock Effects (September 15, 2025)
What Happened
ENS released $7.33 million worth of tokens into circulation as part of a larger $790 million increase in crypto supply. This happened during a week when ENS’s price dropped by 15%, showing that the market was weak and liquidity was spread thin.
Why It Matters
In the short term, this is slightly negative because more tokens are available while demand is low (trading volume dropped 33% in 24 hours). But token unlocks like this are normal for projects managing their funds, and ENS still has less than 40% of its total tokens circulating. Traders should watch for increased selling on exchanges. (CryptoPotato)
3. Linea’s Governance Update (September 10, 2025)
What Happened
Linea, a Layer 2 network developed by ConsenSys, launched its token with ENS as a key governance partner. Unlike many L2 projects, Linea is giving 85% of its tokens to ecosystem growth and not allocating any to venture capital firms.
Why It Matters
This is positive for the long term because it connects ENS with Ethereum’s efforts to scale through community-focused governance. Linea’s goal to make L2 technology more accessible could help increase the use of .eth domains on Layer 2 networks. Still, competition from other L2s like Optimism and Arbitrum is strong. (Bit2Me)
Conclusion
ENS is moving forward with important upgrades like AI integration and L2 partnerships, even as it faces challenges from token unlocks and market ups and downs. Its role in decentralized identity is growing, but its success depends on Ethereum staying ahead of competing blockchains. Will ENS use its governance partnerships to become the go-to naming system for Web3 as AI and L2 adoption speed up?