The Ethereum Name Service’s ENS token has had a tough time recently, dropping to an all-time low in June as the market slumped following the United States Securities and Exchange Commission (SEC) announcing it was suing the Binance and Coinbase exchanges.
Although ENS was not named as an unregistered security, it was unable to withstand market pressures as it fell to record levels.
Recently, the announcement that the Ethereum Name Service was to start to work with layer 2 scaling solutions has given the token a small boost, but can it get out of its weak situation?
But what is Ethereum Name Service (ENS)? How does Ethereum Name Service work? Let’s see what we can find out, and also take a look at some of the Ethereum Name Service Price Predictions that were being made as of 5 July 2023.
In order to either send or receive cryptocurrency, you need a wallet. Something that can make a wallet difficult to use and, by extension, could potentially put people off using crypto, therefore making it harder for blockchain-based finance to gain mainstream approval, is the wallet address.
Wallet addresses are usually a long string of letters and numbers, which can be hard to remember. The Ethereum Name Service is a protocol which aims to turn wallet addresses into short, easy to remember, user names.
See it as the equivalent of how the Domain Name Service (DNS) transforms websites’ IP addresses into something a bit more readable, only for crypto wallets, and you’re on the right track.
The Ethereum Name Service, which was set up in 2017 by New Zealand-based developer Nick Johnson is supported by its native token, known by the ticker handle ENS.
The Ethereum Name Service is, perhaps obviously, based on the Ethereum (ETH) blockchain. It is, however, able to work across blockchains that aren’t Ethereum.
People who sign up to the platform can, in return for an annual fee of anywhere between $5 and $640, change the name of their wallet to something a bit more memorable. Wallets on the Ethereum Name Service end with the extension .eth.
ENS itself is used to give holders the right to vote on changes to the Ethereum Name Service, and it can also be bought, sold, or traded on exchanges.
Because ENS is based on Ethereum, it is a token, rather than a coin. You might see references to such things as an Ethereum Name Service coin price prediction, but these are wrong.
Let’s now take a look at the Ethereum Name Service price history . While past performance should never be taken as an indicator of future results, knowing what the coin has done can help give us some very useful context when it comes to either making or interpreting an Ethereum Name Service price prediction.
ENS first came onto the open market on 9 November 2021, it was worth $33.66. Just two days later, it reached an all-time high of $85.69, before dropping to close the year at $39.01.
With Ethereum Name Service coming out in a bullish market, people might have wanted to know how the token would perform in a more bearish one. 2022 provided the answer – badly.
The price of ENS fell throughout the year, as the market suffered a string of crashes. It fell below $10 in May and, although there was some recovery to nearly $20 in October, following the collapse of the FTX exchange in November it closed the year at $10.76.
This meant that it lost more than 70% throughout 2022.
2023 started off well for ENS, with it reaching a high of $17.96 on 20 February. It slipped down after that. In June, the slump became a crash as, following 10 June’s news that Crypto.com had suspended its American institutional arm, it reached an all-time low of $6.93.
The token made a recovery, with things picking up after it announced its layer 2 plans on 28 June and, on 5 July, it was worth about $9.15.
At that time, there were 28.6 million ENS in circulation out of a total supply of 100 million. This gave the token a market cap of about $262 million, making it the 115th-largest token by that metric.
ENS suffered over the last month or so. Before the SEC said it was to sue Binance on 5 June, it was worth $10.11, which means it lost more than 30% in five days.
Since then, Ethereum Name Service has recovered. After trading at $8.34 on 28 June, it has risen by about 2.3% in a week. That might not sound like much, but its current price is more than 30% above its record low.
On the other hand, ENS is still worth nearly 10% less than it was before the crash.
With that all out of the way, let’s take a look at some of the Ethereum Name Service price predictions that were being made as of 5 July 2023. It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong. Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice.
CoinCodex had a short-term Ethereum Name Service price prediction which did not offer much hope for the token’s investors. It said ENS would sink to a new all-time low of $6.86 by 10 July before going back up somewhat to $8.96 on 5 August.
The site’s technical analysis was, unsurprisingly, bearish, with 22 indicators sending pessimistic signals compared to just five making bullish ones.
In terms of other Ethereum Name Service price predictions for 2023, DigitalCoinPrice saw good news in the shorter-term, with it predicting the token to reach $18.73. PricePrediction.net was much more cautious, saying it would trade at $11.22 in December, while Bitnation had it worth $13.69 this year.
When it came to making an Ethereum Name Service price prediction, Bitnation was out in the lead, with it predicting ENS to reach $31.94 in two years time. DigitalCoinPrice was not far behind, saying it would stand at $31.20, while PricePrediction.net thought it would reach $22.79 by the end of the year.
Moving on to an Ethereum Name Service price prediction for 2030, PricePrediction.net was the most optimistic, saying it would stand at $143.30 in December that year. Bitnation said the token would get to $77.56, while DigitalCoinPrice made an ENS price prediction which said it would trade at $94.29 at the start of the next decade.
ENS has had a torrid time recently, sinking to an all-time low less than a month ago.
While other tokens and coins that dropped in June have made a recovery, Ethereum Name Service is still about 10% lower than before the market collapsed.
Although some people might suggest buying in the dip, we don’t know how long the dip will last, nor where Ethereum Name Service will reach.
The news that the platform is going to work with layer 2 scaling solutions is encouraging but we don’t know if it will really give ENS the impetus it needs right now.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in ENS.
No one can really tell right now. While the Ethereum Name Service crypto price predictions are largely positive, at least in the long term, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in Ethereum Name Service, you will have to do your own research, not only on ENS, but on other, related, coins and tokens such as Ethereum itself.
Either way, you will also need to make sure that you never invest more money than you can afford to lose.
On 5 July 2023, there were 28.6 million ENS in circulation out of a total supply of 100 million.
It might do but, if it does, it won’t be for some time. DigitalCoinPrice doesn’t think it will happen until 2031, while PricePrediction.net has it reach triple figures in late 2029 or early 2030.
Keep in mind that ENS has never been worth $100 before, with its record price of $85.69 coming on 11 November 2021.
The ENS token is used to give people the right to vote on changes to the Ethereum Name Service network. It can also be bought, sold, and traded on exchanges.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.