ENS token jumps 10% after Namechain Ethereum L2 reveal

The Ethereum Name Service (ENS) token saw a 10% rise after ENS Labs announced the launch of its new Ethereum (CRYPTO:ETH) layer 2 solution, "Namechain," during the “frENSday” conference in Bangkok on Nov. 11.

Namechain is designed to make registering names, updating records, and managing decentralised websites easier and more affordable through rollups, enhancing blockchain identity capabilities.

The announcement outlined how Namechain will complement "ENSv2," allowing ENS to scale effectively to Ethereum layer 2 solutions.

"With ENSv2 and Namechain, it will be significantly easier to register names, update records, manage decentralised websites, and more," explained Greg Skril, Developer Relations Lead at ENS Labs.

This new addition aims to improve the usability and accessibility of ENS services.

ENS functions similarly to the internet’s top-level domains like ".com" but operates on the blockchain, using simpler, human-readable names instead of numeric IP addresses.

One notable example is Ethereum co-founder Vitalik Buterin's address, which is accessible as "Vitalik.eth."

Following the announcement, the ENS token spiked 10.8% from $19.46 to $21.56 within 30 minutes, according to CoinGecko.

However, the surge was short-lived, with the token falling back below its pre-announcement level, trading at $19.22.

Jeff Lau, an ENS Labs developer, emphasised that the primary ".eth" domain will stay anchored on the Ethereum mainnet and noted that ENS will remain compatible with other Ethereum layer 2s.

He highlighted that building an in-house Ethereum layer 2 was driven by the need for a user-friendly experience.

ENS Labs hinted at a collaboration with a major industry player to support its layer 2 development, though the partner was not disclosed.

This expansion aligns with ENS's broader efforts, including its integration with PayPal and Venmo for crypto transactions announced in September, aimed at reaching over 270 million users in the U.S.

At the time of reporting, the Ethereum price was $3,138.22.