The Ethereum Name Service (ENS) is one of the most popular cryptocurrency trends 2024. It was a concept that entered production a year after Ethereum made its debut in the cryptocurrency scene. The ENS was introduced by former Google engineer Nick Johnson, offering an easier way of memorizing or recognizing public addresses.
Related: Why is Ethereum’s Price Not Up Today? Post-ETF Approval
Since this year (2024), the ENS has seen many price surges, with the most recent being a 49% price increase. Many have attributed this partly to the actions of Brantly Millegan and the upcoming Ethereum ETF. You’ll learn all about these recent price developments in this article.
Brief Overview of Ethereum Name Service (ENS)
The Ethereum Name Service is the solution that Ethereum developed for the complex public and private addresses of blockchains. With this solution, people can create nicknames that’ll be used for decentralized websites and public addresses.
These nicknames are much easier to remember compared to long wallet addresses. The ENS also makes it easier for newbies and non-tech-savvy individuals to get used to the crypto-tech space.
When someone creates a nickname on the Ethereum Name Service, that name will be linked to their public address. One more thing to note is that all ENS names come with the ‘.eth’ suffix, like Rick.eth, Philip.eth, or Martha.eth.
So with ENS, you can expect to see ‘Vitalik.eth’ as the nickname for someone like ‘Vitalik Buterin’. When someone searches for this name on the Ethereum network or any other decentralized platform, they’ll find Vitalik’s information.
The usefulness of the ENS doesn’t end with making human-readable addresses. It also extends to making human-readable domains for content hashes, crypto wallets, websites, and other useful metadata. As the Ethereum Name Service is an open, distributed, blockchain-secured domain name service, you can expect reliable security.
There has been a recent price surge in ENS price, which is fuelled by many factors, including an impending spot Ethereum ETF approval. The Ethereum Name Service token ($ENS) increased by 49% in a week, owing to the actions of Brantly Millegan, former ENS Operations Director. Director Brantly Millegan deposited 92,535 $ENS, worth $1.98 million, to Coinbase, with each token valued at $21.34.
Current Price Analysis
Although Ethereum Name Service recently enjoyed a surge in value, this just increased the probability of investors selling it. Why, you might ask?
Well, the ENS Market Value to Realized Value (MRVR) ratio after a 30-day period is 25.7%. This MRVR ratio shows that the Ethereum Name Service has been overvalued. Hence, there are a lot of profits to be made from immediately selling these tokens, as dramatic falls follow such price surges.
A quick look at the ENS market analysis will show that ENS corrections typically occur in the 7% to 21% range. So, this range is usually labeled as a danger zone by most investors, and they won’t hesitate to sell when they can.
You can also confirm that this is already happening with the rise in active deposits on the ENS network. Active deposits usually measure the movements of crypto assets from a user’s private wallet to their exchange wallet. All of which points to a massive sell underway.
Notable Developments and Influences
Former director Brantly Millegan has made lots of strategic deposits throughout this year. If you count from January to this point, he has made a total of 291,305 $ENS (worth $6.53 million) deposits to Coinbase. All these deposits follow a common trend; they come whenever ENS experiences a price increase.
The latest deposit from Brantly Millegan came after ENS experienced a 47.7% price jump. This price jump was the result of the rumors flying around that Ethereum ETF approval was likely. Of course, the price dropped by 2% a while later, but that’s just the volatility of the cryptocurrency market.
So, from what has happened, you can say that Brantly Millegan has done quite a lot for the Ethereum Name Service. However, he still has 373,000 $ENS (worth $7.97 million) in a timelock contract.
This means that he will be depositing more ENS tokens in the future. All of which indicates the confidence that he has in the potential of this token.
Future Outlook and Predictions
Although the ENS price analysis shows that this token is bullish, the MRVR ratio is acting against it. It’s causing all investors to be set on selling their assets before the eventual correction.
The recent surge in ENS tokens is tied to most of the developments occurring in the Ethereum ecosystem. One of the most apparent is the news that Ethereum ETF approval is imminent. So, the interest of more investors in the Ethereum blockchain has pushed ENS prices higher.
For the ENS price prediction, analysts believe that this token can surge past its current price of $25.56 to reach $26. Of course, this depends on Brantly Millegan, the Ethereum ETF, and the investors who are bearish on the growth of this token. If investors can resist the urge to sell, this could offer ENS more support, invalidating any bearish outcomes.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
