ENS Labs, the non-profit organization responsible for the Ethereum Name Service (ENS), proposed an ENSv2 upgrade that would make it easier to migrate the protocol to a layer 2 network, it said in a May 28 statement. CryptoSlate.
The move by ENS is exciting for the Ethereum layer-2 network, which has recently seen increased adoption and the total value of assets locked on it has reached new all-time highs.
ENSv2
According to ENS, the ENSv2 proposal aims to overhaul the protocol using a hierarchical registry to improve management and customization of .eth domain names.
This upgrade involves migrating the core functionality of ENS from Ethereum Layer 1 to Layer 2 networks. These changes will benefit both users and developers by improving functionality and usability.
As a result, ENS users enjoy improved scalability, lower gas fees, and faster transaction speeds. Developers also gain more flexibility through a new registry design and other infrastructure improvements. This upgrade is also set to enable multi-chain interoperability.
However, the protocol failed to name the Layer 2 network to migrate to. Nonetheless, ENS elaborated on social media:
“We have been monitoring the health of the L2 ecosystem for a long time while also contributing to internal innovations such as CCIP-Read and EVM Gateway. We believe now is the right time to begin migrating parts of ENS, such as .eth name registration, to L2.”
Layer2 network growth
The total value of assets locked on the Ethereum layer 2 network surged 15% last week to $47.26 billion, according to L2Beat data.
Arbitrum leads with a total value locked (TVL) of $19.3 billion. OP mainnet follows closely behind with TVL of $7.88 billion, while Base, backed by Coinbase, ranked third with $6.94 billion. Other blockchains with TVL exceeding $1 billion include Blast, Mantle, Linea, and Starknet.
Experts attribute this milestone to investors’ renewed confidence in the Ethereum ecosystem and the high adoption rate of these networks. Additionally, the recent ETH price increase due to the approval of the ETH ETF also contributed to the rise in TVL.