Why did the price of ENS fall?
Ethereum Name Service (ENS) dropped 1% in the last 24 hours, underperforming the overall crypto market, which fell by 0.52%. The main reasons include technical resistance, weak interest in altcoins, and ongoing security concerns.
- Technical Resistance (Negative Impact) – ENS price is facing selling pressure near important Fibonacci levels.
- Altcoin Weakness (Negative Impact) – Bitcoin’s strong market share (59.26%) is limiting appetite for riskier altcoins.
- Security Concerns (Negative Impact) – A supply-chain attack from November still affects developer confidence.
Deep Dive
1. Technical Resistance (Negative Impact)
Overview: ENS is struggling to break above the 78.6% Fibonacci retracement level at $9.53. Currently, the price is $9.33, below the 30-day simple moving average (SMA) of $10.67. The Relative Strength Index (RSI) is at 33.37, indicating the asset is oversold but without strong buying momentum.
What this means: Traders are cautious and waiting for a clear price move above $9.53 before pushing the price higher. The $9.40 level acts as immediate support—if the price falls below this, it could drop further toward $8.80, the recent low point.
2. Altcoin Weakness (Negative Impact)
Overview: Bitcoin dominance remains high at 59.26%, meaning more investment is flowing into Bitcoin rather than altcoins like ENS. The CoinMarketCap Altcoin Season Index is at 16 out of 100, signaling a “Bitcoin Season” where altcoins underperform. Ethereum (ETH) and smaller tokens are lagging behind.
What this means: As a mid-sized utility token, ENS faces challenges in this environment. Traders are waiting for Bitcoin dominance to fall below 55% or for strong rallies in Ethereum to boost interest in altcoins again.
3. Security Concerns (Negative Impact)
Overview: In November, a supply-chain attack on npm packages affected ENS, exposing developer credentials (Coinspeaker). Although the issue has been fixed, ongoing audits and updates are still in progress.
What this means: This incident highlights vulnerabilities in the ecosystem and may slow down the adoption of ENS version 2 (ENSv2). Keeping an eye on developer activity on GitHub and partnerships like the Doma integration will be important for improving confidence.
Conclusion
ENS’s recent decline is due to technical hurdles, cautious market sentiment, and lingering effects from past security issues. While the oversold condition might help stabilize the price near $9, a sustained upward move will likely depend on a drop in Bitcoin dominance or progress with ENSv2 adoption.
Key watch: Will ENS hold the $9.40 support level? And can Ethereum’s upcoming Fusaka upgrade, which aims to improve Layer 2 interoperability, boost demand for ENS?
What could affect the price of ENS?
Ethereum Name Service (ENS) is facing challenges and opportunities as it upgrades its technology and expands its reach.
- ENSv2 Launch (2026) – Introducing cross-chain naming with faster, cheaper transactions could increase its usefulness.
- Doma Protocol Integration – Bringing traditional web domains like .com into ENS could grow its user base.
- Security & Market Risks – Recent security issues and large token holders could cause instability.
Deep Dive
1. ENSv2 & Namechain Upgrade (Positive Outlook)
Overview:
In 2026, ENS will launch ENSv2, featuring Namechain—a technology built with Nethermind’s Surge that uses ZK rollups to speed up transactions across different blockchains. This upgrade aims to cut transaction times from hours to seconds and reduce costs by about 90% (CCN).
What this means:
Faster and cheaper transactions could encourage more wallets and apps to use ENS, increasing demand for its tokens. For example, Ethereum’s Dencun upgrade led to a 40% increase in Layer 2 activity in early 2025.
2. Web2 Domain Tokenization (Mixed Impact)
Overview:
The Doma Protocol, launching in November 2025, allows users to turn traditional web domains like .com and .ai into ENS-compatible digital assets. This opens access to over 30 million domains from providers like GoDaddy, blending traditional web identities with blockchain technology (The Block).
What this means:
While this expands ENS’s potential audience, it also introduces competition from existing domain services. Success depends on making the user experience simple enough for people unfamiliar with cryptocurrency.
3. Security & Whale Dynamics (Potential Risks)
Overview:
In November 2025, a supply-chain attack on npm affected over 40 ENS-related software packages, exposing developer credentials. At the same time, a pseudonymous group called Trend Research bought 20.3 million ENS tokens (worth about $190 million), raising concerns about token concentration (CoinMarketCap).
What this means:
Security problems could slow down adoption by businesses, and large token holders might influence prices, causing volatility. ENS’s price is closely tied to Ethereum’s, so broader market downturns could hit ENS hard.
Conclusion
ENS’s success in 2026 depends on delivering on its promises for faster, cheaper cross-chain naming and addressing security and centralization concerns. While integrating traditional web domains offers growth opportunities, the token’s 73% drop over the past year shows skepticism remains. Keep an eye on the November ENS DAO vote, where a $50 million+ budget for developer grants could signal renewed confidence. The big question: can ENS become the go-to identity system for Web3 before competitors like Unstoppable Domains take the lead?
What are people saying about ENS?
The buzz around Ethereum Name Service (ENS) swings between exciting identity technology advances and concerns about its price. Here’s what’s trending right now:
- ENSv2 & Namechain – Positive excitement about a major Layer 2 upgrade
- Gemini partnership – Some doubts about how much it will boost adoption
- $32 price target – Mixed signals from technical analysis
In-Depth Look
1. @ensdomains: Preparing for ENSv2 Namechain launch 🚀
"ENSv2’s Namechain, built using Taiko’s rollup technology, will cut transaction fees by 90% and allow .eth names to work across different blockchains. Public testnet expected in Q2 2026."
– @ensdomains (266K followers · 5.5M impressions · 2025-11-18 05:55 UTC)
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What this means: This is a positive development for ENS. Moving to a Layer 2 solution could make using .eth domains cheaper and more attractive, potentially increasing demand. However, if the full launch is delayed past 2026, enthusiasm might fade.
2. @Gemini: Gemini.eth subname integration 🤝
"All Gemini wallets now automatically create gemini.eth subnames. Since launching in August, 1.2 million subnames have been issued. Using ENS names for account recovery makes things easier for users."
– @ensdomains (266K followers · 3.1M impressions · 2025-08-14 16:23 UTC)
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What this means: This is a neutral signal. While the number of users is growing, only 23% of these subnames have been used in transactions, raising questions about how actively they’re being adopted.
3. @johnmorganFL: $32 price target debate 📈
"ENS broke out of a downward price pattern on the weekly chart. If it holds support at $24, it could reach $32 by the end of the year. The RSI indicator is showing some caution at 68.5."
– @johnmorganFL (35K followers · 890K impressions · 2025-07-27 05:50 UTC)
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What this means: The technical analysis is mixed. The price pattern looks promising, but funding rates recently turned negative (-0.008%), indicating some traders are skeptical.
Conclusion
The overall outlook for ENS is mixed. There’s optimism around new Layer 2 technology and partnerships, but adoption numbers and recent selling pressure (43% of circulating supply sold since November, according to Santiment) show some investor fatigue. Keep an eye on December’s domain renewal rates—historically about 68% of users renew in Q4. If renewals fall below 60%, it could signal weakening demand and lead to downward price pressure.
What is the latest news about ENS?
Ethereum Name Service (ENS) is making progress toward easier everyday use but is also facing some security challenges. Here’s the latest update:
- Shopify-Style User Experience Update (December 22, 2025) – ENSv2 plans to make signing up and using ENS simpler by supporting identities across different blockchains.
- Doma Mainnet Launch (November 25, 2025) – Introducing tokenized premium domain names like .com that work with ENS.
- Supply-Chain Attack Incident (November 24, 2025) – Some important software libraries were hacked, but ENS Labs acted quickly to fix the issue.
In-Depth Look
1. Shopify-Style User Experience Update (December 22, 2025)
What’s happening:
ENS Labs announced ENSv2, a big upgrade that includes Namechain, a technology that helps ENS names work smoothly across different blockchains. The new ENS app will use Rhinestone intents to automatically handle transaction fees and token exchanges, making the process as easy as checking out on Shopify.
Why it matters:
This update lowers the technical hurdles for people who aren’t familiar with cryptocurrency, making ENS more accessible. By allowing easy-to-read names that work on multiple blockchains (like optimism.on.eth), ENS is strengthening its role as a digital identity system for Web3. (CCN)
2. Doma Mainnet Launch (November 25, 2025)
What’s happening:
Doma Protocol launched its mainnet, enabling users to turn traditional domain names (like software.ai) into ERC-20 tokens. These tokenized domains can be used as native Web3 identities thanks to ENS integration, connecting the traditional internet domain system (DNS) with blockchain technology.
Why it matters:
This development is somewhat positive for ENS. It broadens ENS’s usefulness by linking Web2 domains with Web3, but success depends on partnerships with domain registrars. Also, making premium domains tradable could attract interest from larger investors. (The Block)
3. Supply-Chain Attack Incident (November 24, 2025)
What’s happening:
A harmful software worm infected over 40 @ensdomains packages on npm (a popular software library platform), stealing developer credentials. ENS Labs quickly revoked the compromised versions, changed security keys, and confirmed that no user funds were lost.
Why it matters:
This is a short-term setback because it affects ENS’s reputation, but the fast response shows the team’s ability to handle crises. It also serves as a reminder that Web3 security depends heavily on careful management of software dependencies. (Coinspeaker)
Conclusion
ENS is pushing forward with big improvements like ENSv2 and Doma integration while managing security risks. These upgrades aim to make ENS a key identity system for Web3, but ongoing vulnerabilities highlight the importance of strong infrastructure. The question remains: can ENS simplify user experience fast enough to stay ahead of the challenges that come with decentralized technology?
What is expected in the development of ENS?
The Ethereum Name Service (ENS) roadmap is focused on making the platform more scalable, easier to use, and expanding its ecosystem. Key highlights include:
- ENSv2 Mainnet Launch (2026) – Moving the core system to a Layer 2 solution to reduce costs.
- ENS App & Explorer Release (Q1 2026) – New user-friendly tools for managing names.
- DNS Integration Expansion (2026) – Allowing traditional domain names like .com and .org to be used as ENS identities.
- Doma Protocol Partnership (2026) – Turning traditional domains into tokens that can be traded in decentralized finance (DeFi).
Deep Dive
1. ENSv2 Mainnet Launch (2026)
Overview: ENSv2 will shift name registrations and renewals to a custom Layer 2 network called “Namechain.” This network is built using advanced technologies (Taiko’s ZK-rollup and Nethermind’s Surge framework) that reduce transaction fees by about 90%. It also supports cross-chain functionality through CCIP-Read, allowing ENS names to work across different blockchain networks.
What this means: This is a positive development for wider adoption. Lower fees make it more affordable for everyday users and developers to register .eth names. However, there are risks like potential delays in launching the new Layer 2 system or competition from other naming services.
2. ENS App & Explorer Release (Q1 2026)
Overview: The updated ENS App, currently in testing, will offer features like profile updates without transaction fees, customizable header images, and easier creation of subdomains. The new Explorer tool will verify metadata to help prevent scams and phishing attacks.
What this means: This update should make ENS easier and safer to use, encouraging more people to participate. However, its success depends on how well it integrates with popular digital wallets. The security improvements are important for building trust.
3. DNS Integration Expansion (2026)
Overview: After meeting requirements set by ICANN (the organization that manages domain names), ENS will allow users to link their existing DNS domains (like yourbrand.com) directly to ENS without needing to migrate them. Pilot projects with D3 Global aim to tokenize over 30 million domains.
What this means: This bridges traditional internet domains (Web2) with blockchain-based identities (Web3), potentially attracting businesses to use ENS. However, there could be legal and regulatory challenges around domain ownership rights.
4. Doma Protocol Partnership (2026)
Overview: ENS is partnering with D3 Global to enable fractional ownership and trading of premium ENS domains (like software.eth) as ERC-20 tokens on decentralized exchanges (DEXs). This is supported by LayerZero’s cross-chain technology.
What this means: This opens up new financial opportunities by turning domain names into liquid assets within DeFi, tapping into a $360 billion market. However, there is a risk that speculative trading could cause price volatility rather than focusing on practical use.
Conclusion
ENS is evolving from simply being Ethereum’s naming system to becoming a foundational identity layer for Web3. By scaling through Layer 2, partnering with enterprises, and integrating with DeFi, ENS aims to support seamless use across multiple blockchains. While technical challenges and adoption speed remain uncertain, the roadmap positions ENS as a key player in the future of decentralized identity. The big question is whether ENSv2’s cost savings will finally make “.eth for everyone” a reality.
What updates are there in the ENS code base?
Ethereum Name Service (ENS) has recently made important upgrades to its infrastructure and fixed security issues to improve performance and safety.
- Namechain Rollup Integration (November 18, 2025) – ENSv2 moved to a new Layer 2 technology based on zero-knowledge proofs to make transactions faster and cheaper.
- Security Patch After NPM Attack (November 24, 2025) – ENS fixed vulnerabilities after a supply-chain attack targeted developer tools.
- ENS App & Explorer Testing (November 19, 2025) – New user-friendly tools for managing digital identities are being tested.
Deep Dive
1. Namechain Rollup Integration (November 18, 2025)
What happened: ENSv2 launched Namechain, a Layer 2 solution using zero-knowledge rollups built with Taiko’s technology. This helps reduce transaction costs (gas fees) and speeds up name resolution on Ethereum by moving it off the main blockchain.
Using a framework called Surge, transactions now confirm in less than a second, fixing delays when accessing data across different blockchains. Developers can also link blockchain IDs to easy-to-read names like optimism.on.eth.
Why it matters: This upgrade makes ENS faster and more affordable, encouraging more people and apps to use decentralized digital identities in finance and social platforms. (Source)
2. Security Patch After NPM Attack (November 24, 2025)
What happened: Over 40 npm packages related to ENS were compromised in a supply-chain attack, where hackers inserted malicious code into developer libraries like ethereum-ens.
ENS Labs quickly responded by revoking old access tokens, updating the affected packages, and advising developers to change their security keys. No user funds were lost, but the incident showed how risky third-party dependencies can be.
Why it matters: While this caused no direct harm to users, repeated attacks could damage developer confidence. The quick fix helped protect ENS’s reputation. (Source)
3. ENS App & Explorer Testing (November 19, 2025)
What happened: ENS launched trials for its new App and Explorer tools, designed to make managing blockchain names easier.
Users can create subnames like wallet.yourname.eth and recover accounts through partnerships with platforms like Gemini. The App also simplifies the process by handling transaction fees and wallet setup behind the scenes, making it more accessible for people new to crypto.
Why it matters: These improvements could attract mainstream users by making ENS easier to use, supporting wider adoption of .eth names as digital identities, similar to Coinbase’s recent use of .eth usernames. (Source)
Conclusion
ENS is evolving from a specialized naming system into a broader identity platform that works across multiple blockchains. With these infrastructure upgrades and security improvements, ENS is better positioned to balance decentralization with partnerships like D3’s domain tokenization, potentially expanding its role in the digital identity space.