Why did the price of ENS fall?

Ethereum Name Service (ENS) dropped 1.25% in the last 24 hours, underperforming the overall crypto market, which gained 1.4%. Here’s why:

1. Margin Trading Pair Removed: Binance stopped ENS/BTC margin trading, forcing traders to close their positions.
2. Technical Resistance: ENS hit strong resistance levels and couldn’t push higher, showing signs of weakening momentum.
3. Market Shift: Investors moved money away from altcoins like ENS as Bitcoin gained strength.

In-Depth Look

1. Margin Trading Pair Removed (Negative Impact)

What happened: On January 15, 2026, Binance removed the ENS/BTC margin trading pair (CoinMarketCap). This meant traders using borrowed funds to trade ENS against Bitcoin had to close their positions quickly. This caused a wave of selling as these positions were automatically liquidated.
Why it matters: When margin pairs are removed, traders rush to close leveraged bets, creating extra selling pressure in the short term. For ENS, this happened when there was already less trading activity, making price swings more extreme. Some traders may also see this as a sign that big investors are losing interest, which can hurt confidence.
What to watch: Look for increased deposits of ENS on exchanges, which could mean more selling ahead.

2. Technical Resistance (Negative Impact)

What happened: ENS tried to rise but was pushed back near key price points around $10.89 and $10.95. Indicators like the Relative Strength Index (RSI) at 57.74 show momentum fading, and the MACD histogram, while still positive, is shrinking. This suggests buyers are losing strength.
Why it matters: Failing to break through resistance levels means sellers are controlling the market at higher prices. Trading volume dropped by 8.09%, showing less buying interest, which made the price fall more sharply. Short-term traders likely sold near these resistance points, adding to the downward pressure.
What to watch: If ENS falls below $10.50 and stays there, it could drop further toward $9.84, another important support level.

3. Market Shift (Negative Impact)

What happened: The Altcoin Season Index, which measures how well altcoins are doing compared to Bitcoin, dropped 46.94% this week. Meanwhile, Bitcoin’s market share rose to 59.07%, up 0.43% in 24 hours. ENS’s decline contrasts with Bitcoin’s strength, showing investors are favoring Bitcoin over altcoins.
Why it matters: When Bitcoin dominance rises, altcoins like ENS often lose value because investors see Bitcoin as a safer bet. Ethereum’s market share stayed flat at 12.39%, limiting positive momentum for tokens in the Ethereum ecosystem.
What to watch: If the Altcoin Season Index climbs back above 40, it could signal renewed interest in altcoins like ENS.

Summary

ENS’s recent price drop is due to Binance’s margin trading removal, technical resistance holding strong, and a broader market trend favoring Bitcoin over altcoins. For ENS holders, it’s important to keep an eye on exchange policy changes and Bitcoin’s market dominance.
Key point to watch: Will ENS hold the $10.50 support level as Bitcoin continues to gain strength?

What could affect the price of ENS?

Ethereum Name Service (ENS) is balancing between growing adoption as a Web3 digital identity and challenges from market ups and downs.

1. ENSv2 Launch (Positive) – New technology upgrades could make ENS more useful and popular.
2. Web3 Identity Competition (Mixed) – ENS leads but faces rivals like Unstoppable Domains.
3. Token Unlocks (Negative) – Half of ENS tokens will become available by 2026, which might cause selling pressure.

In-Depth Look

1. ENSv2 & Namechain Integration (Positive Outlook)

What’s Happening:
ENSv2 is introducing a new system called “Namechain” using ZK-rollup technology with Taiko. This will cut transaction fees by about 90% and allow .eth names to work across different blockchains (ENS Domains). The plan is to launch a test version in early 2026, with a user experience similar to popular platforms like Shopify, making it easier for people new to crypto to use ENS.

Why It Matters:
Lower fees and simpler setup could lead to more people registering .eth names, which is already growing by 8% month-over-month. In the past, ENS’s price jumped 71% after Coinbase started using ENS for Web3 usernames, showing that improvements in usability can boost demand.

2. Web3 Identity Competition (Mixed Impact)

What’s Happening:
ENS currently has over 2 million .eth names, but competitors like Unstoppable Domains have about 5 million registrations. New players such as Shido Name Service offer alternative domain options like .shido (ShidoNetwork).

Why It Matters:
ENS benefits from being the first major player and its deep integration with Ethereum, which is used by platforms like Coinbase and Gemini. However, competitors offering free domains or solutions that work across multiple blockchains could split the market. ENS’s partnership with Doma Protocol, which connects .com domains to ENS, is an important advantage to watch.

3. Token Unlocks & DAO Governance (Potential Risk)

What’s Happening:
Half of all ENS tokens (about 50 million) are still locked and will gradually become available through 2026. For example, in November 2025, nearly 1% of the total supply was unlocked, coinciding with price drops (CMC Data).

Why It Matters:
As tokens unlock, some holders might sell, putting downward pressure on the price. On the positive side, recent votes by the ENS community to fund eight development teams show strong long-term commitment, which could help balance out concerns about token dilution.

Summary

ENS’s future price depends on how well it rolls out its Layer 2 upgrade while managing the impact of new tokens entering the market. Currently, the price of $10.68 is above key support levels, but technical indicators suggest the price might stabilize soon. The big question is: Will the improved user experience from ENSv2 be enough to counteract selling pressure before competition heats up in the “identity app” space? Keep an eye on ENS’s community spending plans in November and the rate of .eth registrations after the Namechain testnet launches.

What are people saying about ENS?

Conversations around Ethereum Name Service (ENS) are swinging between excitement about its role in Web3 identity and short-term price concerns. Here’s what’s trending right now:

1. ENSv2 buzz – Upgrades on Layer-2 networks aim to significantly lower transaction fees
2. Gemini partnership – Easier wallet recovery using ENS subnames
3. Trader split – Optimists target $20, while pessimists warn of a possible drop to $10
4. Whale activity – Trend Research recently acquired over 20 million ENS tokens

In-Depth Look

1. @ensdomains: Preparing for ENSv2 & Namechain Layer-2 launch

"Every Base App username is now a .base.eth ENS name – over 750,000 registered"
– @ensdomains (265K followers · 7,193 tweets · July 25, 2025)
See original post
What this means: This is a positive sign for ENS adoption as Ethereum’s Layer-2 ecosystem expands. The integration with Base shows ENS is becoming the go-to identity system for major blockchain networks.

2. @EdgenTech: Price outlook for November

"Bull case $22-25 if Bitcoin stabilizes, bear case $10-12 if token unlocks cause sell-offs"
– @MrMinNin via @EdgenTech (2.9K followers · 943 tweets · October 22, 2025)
See original post
What this means: Opinions are mixed. On-chain data shows an 8% month-over-month growth in active ENS domains (910,000 active), but traders remain cautious, balancing hopes for Web3 growth against broader market risks.

3. @BiconomyCom: New exchange listing sparks volatility

"ENS/USDT trading pair launched – 24-hour volume surged 203% to $382 million after listing"
– @BiconomyCom (220K followers · 17K tweets · November 26, 2025)
See original post
What this means: Neutral impact. While the new listing improves liquidity, past listings (like Coinbase Germany in July 2025) caused sharp price jumps followed by significant corrections, so price swings remain a risk.

Conclusion

The overall outlook on ENS is cautiously optimistic. Its role as a Web3 identity platform faces little competition, but token economics and its connection to Ethereum’s price add short-term uncertainty. Key things to watch include the progress of the ENSv2 upgrade (which aims to reduce transaction fees) and trends in .eth domain registrations (with a goal of surpassing 1 million active domains). Price volatility is expected until Namechain’s Layer-2 launch in early 2026 clarifies the benefits of scaling.

What is the latest news about ENS?

ENS is navigating recent changes in the market, including a major exchange removing a trading pair and ongoing improvements to how people use its service. While there may be some short-term ups and downs, ENS remains focused on its long-term goal of making digital identities easier and more useful.

1. Binance Removes ENS/BTC Margin Trading (January 13, 2026) – Binance stopped margin trading for the ENS/BTC pair, which might cause some short-term price swings. However, regular buying and selling of ENS is still available.
2. ENSv2 and User Experience Upgrades (December 22, 2025) – New features aim to make ENS as easy to use as popular online stores like Shopify, including faster and cheaper name services across different blockchains.
3. Discussion on Preventing Scam Addresses (December 24, 2025) – A proposal for a shared blacklist of scam addresses is gaining attention to protect users from phishing attacks that mimic ENS names.

In-Depth Look

1. Binance Removes ENS/BTC Margin Trading (January 13, 2026)

What happened: On January 15, 2026, Binance removed the ENS/BTC margin trading pair along with 37 others. This was part of a routine review to focus on trading pairs with higher activity and lower risk. Spot trading (regular buying and selling) of ENS is still available.
What it means: This change mainly affects traders who use borrowed funds to speculate on price movements. It doesn’t impact the core use of ENS for digital identity. There might be some short-term selling pressure as traders close their positions, but the long-term value of ENS depends on how widely its naming system is adopted, not on specific trading pairs. (CoinMarketCap)

2. ENSv2 and User Experience Upgrades (December 22, 2025)

What happened: James Beck, Head of Growth at ENS Labs, announced upgrades called ENSv2. One key feature is Namechain, a technology that allows ENS names to work quickly and cheaply across different blockchains. The new ENS app also introduces "intents," which automate tasks like swapping tokens or moving assets between blockchains, similar to how Shopify makes online shopping simple with one-click checkout.
What it means: These improvements aim to make ENS easier to use, especially for people new to blockchain technology. By reducing complexity and costs, ENS hopes to become the go-to system for digital identities on the internet. This could attract users beyond the crypto community, especially with partnerships like Gemini’s gemini.eth subnames. (CCN)

3. Discussion on Preventing Scam Addresses (December 24, 2025)

What happened: Binance’s founder, CZ, suggested creating a shared blacklist of scam addresses after phishing attacks caused $50 million in losses. Scammers have been tricking users by creating ENS names that look very similar to legitimate ones (for example, swapping letters that look alike). Some experts say wallet apps should do a better job warning users about these lookalike names.
What it means: This debate highlights the importance of security in ENS’s system. While blacklists could help reduce fraud, ENS’s human-readable names remain a key part of making blockchain addresses easier to use. The challenge is to keep the system safe without losing the benefits of decentralization. (U.Today)

Conclusion

ENS is facing some short-term challenges due to changes in exchange trading options but is making important improvements to how users interact with its service. The new ENSv2 features could make it much easier for everyday people to use ENS, potentially helping it become a standard for digital identity in the Web3 world. Will these upgrades finally bring ENS to the mainstream?

What is expected in the development of ENS?

The Ethereum Name Service (ENS) roadmap is focused on making the platform faster, easier to use, and more accessible. Here are the key milestones to watch for:

1. Namechain Public Testnet (Q2 2026) – Launch of ENSv2’s Layer 2 solution designed to speed up transactions and lower costs.
2. ENSv2 Mainnet Migration (2026) – Full rollout to improve compatibility across different blockchains and enhance user experience.
3. Doma Protocol Mainnet Integration (TBD) – Allowing traditional .com domains to work as native ENS names.

Deep Dive

1. Namechain Public Testnet (Q2 2026)

Overview:
Namechain is a new Layer 2 network built specifically for ENS using advanced technology from Taiko and Nethermind. It aims to fix Ethereum’s current limitations by cutting transaction fees by about 90% and making transactions almost instant. The public testnet will let developers and users try it out and find any issues before the full launch.

What this means:
This is positive news for ENS because cheaper and faster transactions could lead to more people registering ENS domains and growing the ecosystem. However, there could be technical challenges or delays during testing that might slow down progress temporarily.

2. ENSv2 Mainnet Migration (2026)

Overview:
ENSv2 will move its core functions to Namechain, making sure that .eth domain names work smoothly across all blockchain networks, including both Ethereum-compatible (EVM) and non-EVM chains. Improvements include faster updates, cross-chain support, and a unified naming system (like optimism.on.eth). Current users won’t need to do anything manually to switch over.

What this means:
This is good for ENS because it strengthens its position as a universal identity system for Web3, which could lead to more use in decentralized finance (DeFi) and social platforms. Still, there are risks like potential bugs during migration or slower adoption of Layer 2 solutions.

3. Doma Protocol Mainnet Integration (TBD)

Overview:
By partnering with D3, ENS plans to let traditional internet domains (such as .com) be turned into NFTs (ERC-721 tokens) that work as ENS names. This bridges the gap between the old internet (Web2) and the new blockchain-based internet (Web3), allowing users to receive cryptocurrency payments using familiar domain names. This feature is currently being tested, with the full launch waiting on security checks.

What this means:
This is positive for ENS because it opens up the platform to a much larger audience beyond just crypto users, increasing its usefulness and demand. However, there are challenges like regulatory questions around domain tokenization and competition from similar projects like Unstoppable Domains.

Conclusion

ENS’s roadmap focuses on making the system scalable (with Namechain), interoperable across blockchains (with ENSv2), and accessible to mainstream users (with Doma). If successful, ENS could become the key identity layer for Web3. However, it’s important to watch for execution risks and regulatory issues. Also, how quickly Ethereum’s Layer 2 solutions are adopted will likely impact ENS’s timeline.

What updates are there in the ENS code base?

Ethereum Name Service (ENS) has rolled out important updates aimed at improving how it scales, enhancing user experience, and strengthening security.

1. Namechain Rollout (November 2025) – Moving ENS operations to a dedicated Layer 2 solution for faster and cheaper transactions.
2. App & Explorer Launch (October 2025) – New user-friendly tools to manage ENS domains and explore identities on the blockchain.
3. Npm Security Fix (November 2025) – Fixed security issues in developer tools after a supply chain attack.

Deep Dive

1. Namechain Rollout (November 2025)

What’s happening: ENS is shifting its core functions to "Namechain," a Layer 2 rollup built using Taiko’s technology. This means transactions will be quicker and cost less in fees compared to running directly on Ethereum’s main network. While ENS operations move off the main Ethereum chain, security remains strong because final settlement still happens on Ethereum. Node operators will need to get ready for testnet integration by mid-2026.

Why it matters: This upgrade makes ENS more accessible by lowering costs and speeding up domain registrations and lookups. It’s a big step toward making ENS usable for many more people. (Source)

2. ENS App & Explorer Launch (October 2025)

What’s happening: ENS introduced two new tools: the ENS App for managing your ENS domains and the ENS Explorer for searching blockchain identities. Both are built on a shared Web3 identity system. These tools make it easier to create subdomains (like wallet.yourname.eth) and customize profiles with images and other details. They’re currently being tested by users at developer events.

Why it matters: These tools simplify interacting with ENS, making blockchain-based identities easier to use and understand. This encourages more people and developers to get involved with Web3. (Source)

3. Npm Security Fix (November 2025)

What’s happening: ENS Labs responded quickly to a supply chain attack that affected over 400 npm packages, including some used by ENS developers. The attack stole developer credentials but did not impact user assets or mainnet contracts. ENS Labs revoked the compromised packages, reset security keys, and provided instructions for developers to secure their accounts.

Why it matters: While this incident didn’t harm users directly, it highlights the risks in open-source software tools. Developers should regularly check their dependencies to avoid similar issues. (Source)

Conclusion

ENS is growing into Ethereum’s go-to identity system by improving scalability with Namechain, offering easier-to-use tools like the App and Explorer, and staying vigilant on security. The move to Layer 2 solutions could reshape how Web3 naming services work, making blockchain identities more practical and widespread.