ens

Headline:
Ethereum Supply Hits 2016 Levels — What This Means for ETH Traders
Short Intro:
Ethereum’s circulating supply has dropped to levels last seen in 2016, a rare milestone that’s drawing attention from traders and researchers alike. Alongside this, development shifts like ENS changing course are dominating altcoin headlines today.
What Happened:
Recent analysis shows Ethereum’s available supply on exchanges has tightened, falling back toward 2016-era levels — signaling less sell pressure potentially on the books.
Meanwhile, Ethereum Name Service (ENS) scrapped its separate Layer-2 rollout plan (“Namechain”) and opted to remain on Ethereum mainnet, surprising some in the ecosystem.
These developments come as ETH prices have hovered around key support zones recently.
Why It Matters:
Supply dynamics and network decisions can influence how a blockchain ecosystem behaves long-term. Lower exchange supply often reflects hodling behavior (less selling) — not a price prediction, but a sign of capital locking. Meanwhile, ENS’s strategy shift may refocus developer activity closer to Ethereum’s core upgrades.
Key Takeaways:
ETH supply on exchanges is shrinking toward historic lows.
ENS abandons its own L2 project to stay on Ethereum mainnet.
Less circulating supply can mean reduced sell pressure.
Network development decisions shape ecosystem dynamics.
#Ethereum $ETH #ENS #CryptoTrends #Blockchain

In a market where every major protocol is racing to launch its own Layer 2 blockchain, Ethereum Name Service (ENS) just made a shocking contrarian bet. After two years of development, ENS Labs has officially canceled "Namechain" to deploy the massive ENSv2 upgrade exclusively on Ethereum Mainnet.
Why scrap an entire blockchain? Because Ethereum changed the math.
The Death of the L2 Thesis for ENS
The narrative has always been that "Mainnet is too expensive." ENS just proved that narrative outdated. Thanks to EIP-4844 and the rapid scaling of Ethereum’s base layer, gas costs for registering domains have plummeted by 99%.
We are talking about a drop from ~$5 to under 5 cents per registration.
ENS Labs realized a crucial financial truth: It is now cheaper to subsidize Mainnet transactions than to build, secure, and maintain a complex Layer 2 network.
Security Over Complexity
This isn't just about money; it's about trust. By staying on L1, ENS avoids the "trust assumptions" that come with L2s—centralized sequencers, bridge risks, and upgrade keys. ENS is the identity layer of Web3; it belongs on the most secure, decentralized blockspace in the world.
Even Vitalik Buterin endorsed the move, reinforcing that core infrastructure like ENS should remain accessible on the base layer rather than fragmenting into specialized chains.
What to Expect in ENSv2
The roadmap remains aggressive. The upcoming upgrade leverages the Mainnet focus to deliver:
Single-Step Registration: No more clunky, multi-transaction flows.Cross-Chain Power: Support for payments and interoperability across 60+ chains, including Bitcoin and Solana.Per-Name Registries: Enhanced flexibility for domain management.
The Big Picture
This is a signal to the rest of the market. While the "Appchain" thesis (every app gets a chain) is popular, ENS is betting on a "Fat L1" future where Ethereum scales enough to host high-value applications directly.
If the OG of Ethereum utility doesn't need an L2 anymore, who else might cancel their chain plans?
Is the rush to launch L2s officially over-saturated? 👀
#ENS #Ethereum