When cryptocurrency garnered the attention of many for its robust and secure functions, users faced technical obstacles in the form of wallet addresses, which consisted of long strings of letters and numbers. At this point, the Ethereum Name Service (ENS) came as a huge relief. A decentralized protocol, it transformed crypto addresses into memorable, human-readable labels. Example: alice.eth. This elegant innovation not only simplified peer-to-peer transfers but also became the infrastructure backbone of an upcoming Web3 identity layer.
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How ENS Works
ENS is built atop two smart contracts on the Ethereum blockchain: The registry and the resolver. The registry maintains records of registered ENS domains—holding metadata such as domain ownership, resolver, and Time-To-Live (TTL) settings.
The resolver smart contract translates user-friendly ENS names into machine-readable identifiers, Ethereum wallet addresses, content hashes, or even metadata, enabling seamless transactions and decentralized website hosting.
Moreover, ENS supports hierarchical names and subdomains, granting registrants full governance over their namespace, much like DNS, while ensuring decentralization .
Present Day Usage & Growth
As of mid-2025, ENS has graduated far beyond its initial utility as a convenience layer. It is now widely adopted as a decentralized identity framework—linking not only wallets but also digital profiles, NFTs, DAOs, and content across chains. Over 1.7 million ENS domains are currently registered, evidencing rising demand as crypto converges with mainstream digital identity systems .
ENS Token: Governance Powerhouse
Launched via retroactive airdrop in November 2021, the ENS token is an ERC-20 token that empowers holders with governance rights over the ENS DAO, allowing decisions on pricing, protocol enhancements, treasury disbursements, and more. There are 100 million ENS tokens in total, with approximately 33–37 million currently in circulation across various platforms.
Market Sentiment
The Ethereum Name Service (ENS) token trades at roughly $29 USD, supported by a market capitalization near $1 billion. Circulating supply stands at about 33 to 37 million ENS out of a 100 million maximum. Daily trading volume ranges between $150 million and $180 million, reflecting sustained liquidity and active participation across major exchanges such as Binance, Coinbase, and Kraken. ENS’s price stability over recent months contrasts with the volatility of smaller-cap tokens, underscoring its status as a mature, governance-driven protocol. Adoption remains strong, with more than 1.7 million domains registered, reinforcing ENS’s dual role as a digital identity standard and a governance asset.
Why ENS Matters
User Experience: ENS solves for human error and trust in financial transactions by replacing addresses like “0xF34 …” with simple names, thus building confidence in wallet transfers.
Decentralized Identity: ENS domains now function like digital passports, connecting wallets, DAOs, NFT collections, IPFS sites, social profiles, and more.
Censorship Resistance: With no central authority controlling domain ownership or resolution, ENS resists tampering, unlike traditional DNS .
Governance: ENS’s DAO model ensures protocol evolution remains decentralized, with token holders directing decisions on pricing structure, UX, and infrastructure enhancements.
Looking Ahead
ENS is currently investing in scaling solutions like Namechain, a proprietary Layer-2 rollup, to reduce costs and improve throughput for mass adoption. With the broader Web3 ecosystem expanding, wallet tools, browser integrations, NFT platforms, social apps, ENS is positioned to serve as the default identity layer for blockchain-native users.
If ENS continues gaining adoption as the go-to naming and identity protocol, it may become as critical to Web3 as DNS is to today’s internet.
At present, ENS is no longer a niche utility, but a mature, governance-layered infrastructure fueling Web3’s next wave of growth and usability.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
