ENS drop Layer‑2 namechain as Ethereum L1 capacity dey rise

Published: 2026-02-09 12:59:10 |

ENS (Ethereum Name Service) don drop dia plan for ENSv2 Layer‑2 rollup wey dem call Namechain, and dem go deploy ENSv2 directly for Ethereum mainnet. ENS lead developer nick.eth talk say registration gas cost don fall by about 99% for the past year and recent protocol upgrades — especially the Fusaka upgrade wey boost di block gas limit to around 60 million — na the main reasons to keep ENSv2 for L1. Ethereum core developers dey target 200 million gas limit by 2026 and dem dey expect more throughput from planned ZK upgrades. Namechain wey dem propose for November 2024 to move domain registrations onto rollups to cut costs and make UX easier, no longer needed because L1 fees don drop and base‑layer capacity don increase. ENS go still make sure say e fit interoperate with Layer‑2s but engineering go focus on ENSv2 features on L1: redesigned registration architecture, improved ownership model, per‑name registries to ease cross‑chain operations, and better expiry handling. For traders, this pivot reduce short‑term development uncertainty and fragmentation risk for ENS domains, show stronger on‑chain capacity on Ethereum L1, and fit reduce event‑driven volatility for ENS‑related tokens and services.

Neutral

Di decision to keep ENSv2 for Ethereum L1 no go really make ETH price blow up or crash by itself. Positive mata: e dey show say L1 fit scale well (gas cost go down and block gas limit go high), e reduce chance say ENS services go scatter, and e clear short-term development wahala wey fit make token waka up and down. Dat one dey support steadier market conditions for ENS activity and fit small increase on-chain use of ETH for name registrations. Cons: the change no get strong direct effect on ETH supply/demand — na mainly where ENS logic dey run e touch, no be ETH issuance or big new capital wey enter market. For ENS-specific tokens or ecosystem services, the news dey reduce execution risk and fragmentation, which good for long-term utility but fit no cause strong short-term price moves. Overall impact: neutral — e support operational stability but no be major price catalyst for ETH.