Why the Ethereum Name Service Price is Rising?

In a remarkable upswing, the price of Ethereum Name Service (ENS) has jumped by 40% over the past two days, now trading at $31.70. This surge began on June 12, with ENS climbing an impressive 80% to reach a peak of $35.1, a level not seen since January 2022. Why the Ethereum Name Service Price is Rising? Let's take a look at this ENS price article. 

How has the Ethereum Name Service (ENS) Price Moved Recently?

Today, the Ethereum Name Service (ENS) price stands at $31.70, with a 24-hour trading volume of $1.02 billion and a market cap of $997.94 million, holding a market dominance of 0.04%. Over the past 24 hours, ENS has surged by 22.07%.

ENS hit its peak on November 11, 2021, trading at an all-time high of $83.40. Its lowest point was recorded on October 20, 2023, at $6.69. Since then, the lowest price ENS has seen is $6.69, while the highest since this cycle's low is $33.77. Currently, market sentiment for ENS is bullish, with the Fear & Greed Index at 53, indicating neutrality.

With a circulating supply of 31.48 million ENS out of a maximum of 100 million, ENS has experienced a yearly supply inflation rate of 9.92%, translating to 2.84 million new ENS tokens in the past year.

Why the ENS price is rising?

The Ethereum Name Service (ENS) has seen a notable surge in its price recently, driven by investor anticipation of the forthcoming ENSv2 upgrade. This upgrade aims to bolster scalability, affordability, and flexibility, with current efforts focused on upgrading name resolution and managing reserve resolution, as outlined in the project's updated roadmap.

While specific details regarding the timing of the ENSv2 rollout remain undisclosed, indications from the roadmap suggest a timeline spanning several months for completion.

In addition to technological advancements, market sentiment around ENS has been buoyed by speculation surrounding a potential approval of a spot Ethereum ETF by the SEC this quarter. Despite the agency's recent return of S1 filings to issuers, there are signs pointing to a possible approval in the coming months. Should this occur, market analysts anticipate a positive impact on ENS performance.

Javon Marks, a prominent market analyst, highlighted that the recent price surge has propelled ENS to new highs, setting a target of $76.12. Marks suggests that if current trends persist, ENS could potentially see further gains of up to 138%.

Offering an even more optimistic outlook, analyst Matthew Hyland predicts that ENS could soar to $120 if the current upward momentum continues unabated. Investors and analysts alike are closely monitoring these developments, poised for potential shifts in the cryptocurrency market landscape.

How High Can the ENS Price Go?

Based on a comprehensive analysis of Ethereum Name Service (ENS), the outlook for its future price trajectory appears promising and supported by several key metrics. Over the past year, ENS has surged by an impressive 241%, reflecting robust investor confidence and growing interest in its underlying technology. This substantial growth has outpaced 77% of the top 100 cryptocurrencies, including major players like Bitcoin and Ethereum, indicating ENS's competitive edge and attractiveness as an investment option in the crypto space.

Technically, ENS is currently trading above its 200-day simple moving average (SMA), a bullish signal often interpreted as a sign of sustained upward momentum. The cryptocurrency also boasts a significant market capitalization and high liquidity, factors that enhance its appeal to investors seeking stability and potential for capital appreciation.

Supply dynamics further contribute to ENS's price dynamics, with less than 31% of its total supply currently in circulation. This scarcity could drive prices higher as demand continues to increase, potentially mitigating the impact of its 9.92% yearly inflation rate.

Looking forward, analysts and market observers anticipate continued positive performance from ENS, buoyed by ongoing developments such as the anticipated ENSv2 upgrade and potential SEC approval of a spot Ethereum ETF. These factors collectively suggest that ENS has the potential to not only revisit but potentially exceed its previous all-time high. However, investors should remain cautious of market volatility inherent in the cryptocurrency sector and monitor external factors that could influence price movements.