ENS token surges 35% to defy market trend after Vitalik calls the platform ‘super important’

Ethereum Title Service’s native token ENS surged over 40% on Jan. 3 after Ethereum co-founder Vitalik Buterin spoke positively about the platform and stated it was “super important” for the ETH ecosystem.

As of press time, ENS was buying and selling at roughly $13.94, up 40.38% over the final 24 hours. The token has a market cap of round $423.20 million.

The token’s buying and selling quantity over the similar interval stood at roughly $364.28 million, indicating a excessive degree of market exercise.

Addresses linked to Ethereum names collectively management round $277 million in numerous cryptocurrencies, together with ether, wrapped ether, USDC, and Uniswap tokens. The massive sum is indicative of considerable monetary exercise inside the ENS ecosystem.

ENS integration

Buterin’s endorsement of ENS, describing it as “super important,” has performed a pivotal function in the upward trend.

He believes that Layer-2 blockchains should combine ENS domains to improve the person expertise in decentralized finance (DeFi) as they want a trustless, Merkle-proof-based CCIP resolver. Such integration would enable ENS subdomains to be registerable, updatable, and readable instantly on Layer-2 platforms.

Buterin additionally just lately proposed a brand new tax on ENS domains, aiming to guarantee broader model adoption and decentralized possession of ENS addresses. The proposed tax includes a 3% annual price primarily based on the highest bid for a website title.

This price mannequin is meant to discourage the hoarding of domains for revenue and encourage their use by entities who will actively use them, thus selling wider adoption and doubtlessly benefiting ENS token holders as the funds from these charges would help the DAO (Decentralized Autonomous Group) related to ENS.

Demand-based recurring pricing

Buterin additionally beforehand instructed options to Harberger taxing ENS domains in 2022.

As an alternative of Harberger’s mannequin, the place asset house owners set their asset’s worth and pay a share of it in yearly taxes, Buterin proposed a demand-based recurring pricing mannequin.

This mannequin would see annual area charges rise in proportion to a website’s valuation, which in flip would enhance primarily based on open bids made by different customers. The purpose of this method is to create a fairer and extra dynamic pricing mechanism that displays the precise demand and worth of ENS domains.

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