Ethereum Name Service (ENS) Labs announced in a community call on June 28 that it intends to introduce Layer 2 (L2) interoperability for its ENS domains. The goal is to improve performance, scalability, and cost efficiency for users managing their ENS domains.
ENS domain name registrations saw robust growth in the second quarter of 2021. Data from Dune Analytics shows that 79,463 ENS domain names were registered in the last quarter.
June, marked by a significant drop in gas fees on the Ethereum network, saw the highest number of registrations with 35,932 ENS domain names registered.
Despite a difficult economic environment, ENS made a cumulative profit of $4.8 million between April 1 and June 30, despite a 21% decline in revenue during this period. ENS’ annual revenue fell 5.11%, according to Token Terminal.
The implementation aims to implement off-chain resolvers, leveraging an ENS off-chain ledger contract and the services of Coinbase’s cb.id, Lens Protocol, and OptiNames on the Optimism Network.
This milestone comes as the L2 ecosystem continues to see an influx of projects and protocols. According to data from L2Beat, the total value of stranded assets at L2 service providers has increased by more than 190% over the past year, to $9.78 billion at the time of writing. Arbitrum leads the market with a 60% share and a total value locked (TVL) of $5.87 billion.
The daily performance chart of ENS price showed an increase inaccumulation de tokens ENS since mid-June, along with a corresponding 22% growth in value. The Relative Strength Index (RSI) and Money Flow Index (MFI) indicators were up, indicating a bullish trend.
By introducing Layer 2 interoperability, ENS Labs is taking an important step towards improving the operational efficiency and cost-effectiveness of managing ENS domains.
This development is part of a growing trend of Layer 2 adoption across the blockchain sphere, in an effort to address the scalability and performance bottlenecks often associated with the Ethereum mainnet.
By enabling Layer 2 solutions, ENS not only follows industry trends, but also reaffirms its commitment to user experience and network efficiency.
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