What could affect the price of ENS?
The outlook for ENS price balances upcoming protocol upgrades with ongoing token unlocks.
- ENSv2 Upgrade – Moving to a Layer-2 solution could increase adoption (positive sign)
- Token Unlocks – $7.3 million in new tokens released monthly until 2026 (creates selling pressure)
- Web3 Identity Demand – Integrations with Coinbase and Gemini show growing real-world use
Deep Dive
1. Protocol Upgrades & Partnerships (Positive)
Overview:
ENS plans to upgrade to ENSv2 by moving to a dedicated Ethereum Layer 2 network called "Namechain." This change aims to reduce transaction fees by about 90%, making it much cheaper to register and manage ENS names. Partnerships with companies like Gemini (which has over 750,000 gemini.eth subnames) and PayPal/Venmo (which now supports ENS name resolution) highlight growing business interest.
What this means:
Lower fees should encourage more people to register .eth names, which have already grown 15% year-over-year. These partnerships also confirm ENS as a leading Web3 naming system, which could increase demand for the ENS token.
2. Token Supply Dynamics (Negative)
Overview:
ENS faces a steady release of new tokens, with $7.33 million worth unlocking every month until July 2026. This adds selling pressure equal to about 15% of the token’s average monthly trading volume of $47 million. The ENS DAO treasury holds 40.6 million ENS tokens (valued at $854 million), and recent votes have approved grants to eight development teams.
What this means:
While funding development is good for long-term growth, the continuous increase in token supply could limit price gains unless demand grows significantly. The daily turnover rate of 0.37% suggests that the market has limited liquidity, which could cause bigger price swings when large amounts of tokens move (Tokenomist).
3. Ethereum Ecosystem Synergy (Mixed)
Overview:
ENS benefits from Ethereum’s dominant 58% share of the smart contract market but faces competition from Layer 2-specific naming systems like Linea. The Altseason Index at 62 indicates that investors are shifting funds toward infrastructure projects like ENS.
What this means:
Ethereum’s upcoming "Verge" upgrade in early 2026 will improve address handling, potentially making ENS more integrated. However, the growing number of Layer 2 networks could fragment the market, reducing ENS’s universal appeal unless it improves cross-chain compatibility.
Conclusion
ENS’s price will depend on how well it executes the Layer 2 upgrade while managing the impact of ongoing token unlocks. The $20–$22 price range aligns with key technical support levels, and holding this zone could lead to a retest of $26.71. Keep an eye on the October 2 DAO vote about shortening grant vesting periods—faster payouts could speed up development but might also increase short-term selling.
Will ENSv2’s user experience improvements outweigh the pressure from token dilution?
What are people saying about ENS?
Conversations around Ethereum Name Service (ENS) are swinging between its dominance in .eth domain registrations and price fluctuations. Here’s what’s trending right now:
- Positive technical signals aiming for $32–$38 price targets
- Cautious traders warning about a possible triple-top pattern
- Gemini partnership driving excitement around wallet naming
- Large investors (whales) accumulating ENS, showing institutional interest
In-Depth Look
1. Bullish Technical Breakout at $32
@johnmorganFL reports:
"ENS broke a key resistance level at $23.47, with the Relative Strength Index (RSI) at 72.36, indicating strong momentum. The next target is $32 if buyers keep control."
– @johnmorganFL (38K followers · 210K impressions · July 27, 2025)
See original post
What this means: This technical breakout suggests growing confidence in ENS, supported by increasing adoption within the Ethereum ecosystem.
2. Gemini Integrates .eth Subnames
@ensdomains announces:
"Every Gemini wallet will now have gemini.eth subnames, eliminating complicated hexadecimal addresses and making account recovery easier."
– @ensdomains (289K followers · 2.1M impressions · August 14, 2025)
See original post
What this means: This partnership is a strong sign of institutional adoption, as Gemini simplifies Web3 identity management by standardizing ENS names for its users.
3. Bearish Short-Term Setup Around $16
@CoinMarketCap community post notes:
"A failed breakout suggests a potential drop to $14.80. Short sellers currently hold 55.45% of positions."
– CoinMarketCap Community (1.2M views · June 27, 2025)
See original post
What this means: Some traders expect short-term price pressure, betting that ENS might pull back to lower support levels.
4. Whale Buys 20.3 Million ENS Tokens
@ai_9684xtpa reports:
"Trend Research moved $5.5 million worth of ENS tokens from Binance, marking the first major purchase in a year."
– On-chain analyst (July 23, 2025)
See original post
What this means: Large investors are showing renewed confidence in ENS, viewing it as a valuable Web3 infrastructure asset despite recent price swings.
Conclusion
The outlook for ENS is mixed. On one hand, the ecosystem is growing with positive signs like Gemini’s integration and whale accumulation. On the other hand, technical indicators and profit-taking could lead to short-term price dips. Keep an eye on the $26–$29 price range—holding above this zone could confirm a bullish trend, while falling below might trigger further sell-offs. Also, watch .eth domain registrations after upcoming upgrades to gauge real-world adoption.
What is the latest news about ENS?
Ethereum Name Service (ENS) is making strides in partnerships, governance, and scaling as it becomes a key player in digital identity. Here are the latest highlights:
- Gemini Wallet Integration (August 14, 2025) – All users receive gemini.eth subnames to make crypto transactions easier.
- DAO Legal Fee Grant Approved (October 2, 2025) – ENS DAO approved $109,818 USDC for ongoing legal support.
- Linea’s Layer 2 Token Launch (September 10, 2025) – ENS joined ConsenSys’ Ethereum scaling consortium.
In-Depth Look
1. Gemini Wallet Integration (August 14, 2025)
What Happened:
ENS teamed up with Gemini to add .eth subnames (like you.gemini.eth) to Gemini’s new smart wallet. This lets users recover their wallets using ENS names and interact with decentralized apps (dApps) using easy-to-read addresses instead of complicated strings of numbers and letters.
Why It Matters:
This is a positive development for ENS because it brings practical use to Gemini’s wide range of users, from everyday people to institutions. The wallet recovery feature could help more people adopt crypto by reducing the need to remember complex seed phrases. However, the success depends on how many people start using Gemini’s wallet, which competes with popular wallets like Coinbase and MetaMask.
(ENS Domains)
2. DAO Legal Fee Grant Approved (October 2, 2025)
What Happened:
The ENS decentralized autonomous organization (DAO) voted to spend about $110,000 USDC on legal fees. These funds will cover issues like regulatory compliance and intellectual property disputes. The proposal passed with strong community support (89% approval).
Why It Matters:
This shows that the ENS community is serious about managing legal risks, which is a good sign for the project’s long-term stability. On the other hand, it also highlights ongoing regulatory challenges for decentralized naming systems, which could become more complicated if global rules around web3 identities tighten.
(Yahoo Finance)
3. Linea’s Layer 2 Token Launch (September 10, 2025)
What Happened:
ENS became a founding member of the Linea Consortium, supporting ConsenSys’ Ethereum Layer 2 network. Linea’s token distribution focuses 85% of tokens on growing the ecosystem, avoiding traditional venture capital funding.
Why It Matters:
This is a promising move for the future because Linea offers a low-cost environment that could boost ENS adoption for everyday use. However, Linea faces tough competition from other Layer 2 networks like Arbitrum and Optimism, which already support ENS-based applications.
(Bit2Me News)
Conclusion
ENS is strengthening its position in web3 identity through key partnerships like Gemini and Linea, while also reinforcing its governance with legal planning. With PayPal and Venmo integrations already active and Coinbase Germany listing ENS in July, the protocol is moving from a niche service to essential infrastructure. The big question: Can ENS maintain its 24% annual price growth as altcoin liquidity tightens after September unlocks? Keep an eye on Q4 user registrations and Ethereum’s Layer 2 activity for signs.
What is expected in the development of ENS?
The Ethereum Name Service (ENS) roadmap is centered on improving scalability, ease of use, and cross-chain compatibility.
- ENSv2 Mainnet Launch (Q4 2025) – Moving core functions to Layer 2 to cut fees and speed up transactions.
- Cross-Chain Resolution Upgrade (Q1 2026) – Allowing ENS names to work seamlessly across different blockchain networks.
- Decentralized Governance Expansion (2026) – Enhancing community control over upgrades and funds through better voting systems.
Deep Dive
1. ENSv2 Mainnet Launch (Q4 2025)
Overview
ENSv2 is the biggest update since ENS started in 2017. It will move key features like registering and renewing domain names to a new Ethereum Layer 2 network called “Namechain.” This change aims to reduce transaction fees by about 90% (ENS Blog). The update will happen in stages, including launching new smart contracts, transferring existing .eth names to Layer 2, and updating how names are resolved.
What this means
Lower fees could encourage many more people to register .eth names, which currently number over 2 million. However, there are risks like delays in launching Layer 2 or challenges users might face when switching, which could slow down adoption temporarily.
2. Cross-Chain Resolution Upgrade (Q1 2026)
Overview
ENS plans to add CCIP-Read gateways, which will let .eth names work across different blockchains such as Solana, Bitcoin, and Cosmos without relying on centralized bridges (CCN).
What this means
This upgrade makes ENS more useful as a universal digital identity across Web3. However, competition from similar projects like Unstoppable Domains and slow adoption by wallet providers might limit its immediate impact.
3. Decentralized Governance Expansion (2026)
Overview
The ENS community plans to improve governance by creating smaller sub-groups (sub-DAOs) focused on specific areas like pricing and Layer 2 partnerships. They will also introduce quadratic voting, a system designed to reduce the influence of large token holders (Governance Forum).
What this means
Better governance could attract more institutional users and lead to more stable decision-making. Still, low voter participation (currently about 12% of token holders) is a challenge.
Conclusion
ENS is focusing on making its service faster, cheaper, and more versatile by using Layer 2 solutions and enabling cross-chain functionality. While there are technical and adoption challenges ahead, successful implementation could strengthen ENS’s position as a key part of the Web3 identity system. Could the cost savings from ENSv2 spark a surge in .eth registrations similar to the early days of internet domain names?
What updates are there in the ENS code base?
Ethereum Name Service (ENS) has released important updates to improve security, testing, and user experience.
- Security Fix – Autocomplete Risk (April 2024) – Removed a risky autocomplete feature to stop scammers from redirecting users to fake addresses.
- Testing Upgrade (April 2024) – Switched testing tools from Cypress to Playwright for faster and more reliable app testing.
- Gasless DNSSEC Support (April 2024) – Added a way to import traditional domain names without paying blockchain transaction fees.
In-Depth Look
1. Security Fix – Autocomplete Risk (April 2024)
What happened:
ENS discovered a security issue where the app would automatically add “.eth” to search terms. Scammers took advantage of this by registering ENS names that looked like users’ wallet addresses (for example, 0x123…abc.eth). If a user searched their own wallet address, the autocomplete might suggest the scammer’s fake ENS name first, risking lost funds.
ENS quickly removed this autocomplete feature to protect users from being tricked.
Why it matters:
This quick fix shows ENS’s commitment to security and helps users trust the platform more by reducing phishing risks.
(Source)
2. Testing Upgrade (April 2024)
What happened:
ENS switched its testing system from Cypress to Playwright. Testing blockchain apps is tricky because they involve complex interactions with wallets and networks. Playwright allows tests to run faster and more reliably by isolating environments and running tests in parallel.
Why it matters:
While this change doesn’t directly affect users, it helps ENS developers release new features more quickly and safely, supporting future growth.
(Source)
3. Gasless DNSSEC Support (April 2024)
What happened:
ENS now supports importing traditional domain names (like example.com) without requiring blockchain transactions. Instead, these domains are verified offchain, meaning users don’t pay gas fees.
Users can choose between onchain imports (which offer permanent ownership) or offchain imports (which are free but less permanent). Offchain domains show an “imported” label and can be customized.
Why it matters:
This lowers the barrier for people who already own regular domains to use ENS, helping bridge traditional web domains with decentralized naming systems.
(Source)
Conclusion
ENS’s latest updates focus on improving security, speeding up development, and making the platform easier to use for both crypto and traditional domain owners. These improvements support ENS’s goal of becoming a mainstream identity solution on Ethereum and Layer 2 networks. While the price remains volatile ($21.06, +5.02% in 24 hours), these technical advancements could encourage more developers and users to engage with ENS ahead of the upcoming ENSv2 release.
Why did the price of ENS go up?
Ethereum Name Service (ENS) increased by 4.12% in the last 24 hours, outperforming its weekly decline of 0.3% and monthly drop of 3.4%. This rise is linked to positive developments in the Ethereum ecosystem and encouraging technical indicators. Here are the main reasons:
- DAO Governance Activity – ENS’s decentralized organization is actively voting on important proposals, boosting community involvement.
- Ethereum’s AI Initiatives – New AI projects on Ethereum indirectly support ENS’s role as a key identity system.
- Technical Recovery – Indicators like RSI and price breakouts suggest short-term upward momentum.
Detailed Analysis
1. DAO Governance Activity (Positive Influence)
Summary:
The ENS DAO is currently voting on spending 109,818.82 USDC for legal expenses, with the vote ending on October 2. This shows the project’s active management and financial responsibility. Such governance votes often attract attention because they demonstrate the project’s ongoing health.
Why it matters:
If approved, this spending plan could boost investor confidence in ENS’s stability. Past trends show that active DAO governance often leads to short-term price increases, as it signals strong decentralized control.
What to watch:
The final vote results and how the treasury funds are managed afterward.
2. Ethereum’s AI Initiatives (Mixed Impact)
Summary:
On September 15, the Ethereum Foundation launched the “dAI Team,” aiming to make Ethereum the main platform for AI agents. While this isn’t directly related to ENS, it raises Ethereum’s overall importance. ENS plays a key role by providing human-friendly names that AI agents might use.
Why it matters:
As Ethereum’s infrastructure grows with AI, demand for ENS domains could increase since AI systems will need easy-to-understand addresses. However, this impact depends on how quickly AI adoption happens and remains speculative.
3. Technical Recovery (Positive Influence)
Summary:
ENS’s price bounced back from its 30-day simple moving average (SMA) of $22.39 and a key support level at $19.90. The Relative Strength Index (RSI) is at 34.76, which is neutral but suggests room to move higher. The MACD indicator shows that bearish momentum is weakening.
Why it matters:
Traders may see this as a buying opportunity after a period of price stability. If ENS can stay above $21.63 (a key Fibonacci retracement level), it might aim for $23.01 next.
Conclusion
ENS’s recent 24-hour price increase is driven by a combination of active governance, Ethereum’s expanding AI projects, and positive technical signals. While the short-term outlook looks promising, the price could still be volatile due to broader market factors.
Key point to monitor: Can ENS maintain its position above the 7-day SMA of $20.19 amid ongoing market uncertainty?