On January 3, the Ethereum Name Service (ENS) governance token experienced a 72% increase after Ethereum co-founder Vitalik Buterin praised the domain platform.

Buterin praised the Ethereum Name Service as "super important" and reaffirmed that the platform should continue to be available and reasonably priced for all Ethereum network users, particularly those on layer-2 networks, in a post published on January 3 to X (formerly Twitter).

In order to have ENS subdomains that are registerable, updateable, and readable directly on L2s, Buterin stated that all L2s should be working on (trustless, merkle-proof-based) CCIP resolvers.

Buterin thinks that in order to further improve the usability of ENS addresses, layer-2 networks—which are crucial to the long-term scalability of Ethereum networks—should be able to register them.

According to CoinMarketCap data, the price of the ENS token shot up from an annual low of $8.50 to an eight-month high of $14.70 shortly after Buterin's X post.

Since then, the price of ENS has stabilized and, as of this writing, is trading at $12.90.

On Nov. 28, 2021, ENS reached its highest point of $74.25. At that same time, the cryptocurrency market as a whole started to decline and quickly entered an extended bear market.

A ".eth" domain name can be purchased by cryptocurrency users through the Ethereum Name Service.

Transferring and receiving money between users on the Ethereum network can be made simpler by using this in place of the complicated string of characters and numbers that usually makes up a user's wallet address.

Known as the "Harberger" tax proposal, Buterin suggested imposing a 3% tax on ENS domain names in September 2022.

According to Buterin, this would facilitate broader adoption and more decentralized ownership of ENS addresses by preventing early users from hoarding domain names in an attempt to maximize profits.

Sources:

https://cointelegraph.com/news/ens-token-surges-70-vitalik-buterin-lauds-platform-super-important

https://coinmarketcap.com/currencies/ethereum-name-service

https://twitter.com/VitalikButerin/status/1568070721753989120

https://twitter.com/VitalikButerin/status/1742540651797823948