Key Takeaways
- ENS is launching ENSv2 primarily on Ethereum’s Layer 1 (L1) rather than the previously planned Namechain Layer 2 (L2), aligning with Ethereum’s significant scalability improvements.
- The decision comes as gas fees for registrations have dramatically decreased, suggesting that operations on L1 are now more cost-effective.
- Users can expect more streamlined services with added features while benefiting from the enhanced security and decentralization offered by the Ethereum L1 network.
What Happened
The Ethereum Name Service (ENS) officially announced on February 6, 2026, that it will launch ENSv2 solely on Ethereum’s Layer 1, opting to discontinue the development of its Namechain Layer 2 network. This strategic pivot comes in response to Ethereum’s significant scaling upgrades, which made the creation of an independent L2 less necessary. Major enhancements include the doubling of the gas limit from 30 million to 60 million in 2025 and a remarkable 99% drop in gas fees for ENS registrations, dropping costs from around $5 to merely $0.05 post the Fusaka hard fork, as reported by CoinDesk.
Why It Matters
This shift underscores a trend among crypto projects focusing on Ethereum’s foundational capabilities rather than relying on secondary layer solutions. As Ethereum scales effectively, many projects, including ENS, are finding that L1 can sufficiently support operations previously thought necessary for L2. Furthermore, this aligns with recent discussions in the crypto community regarding Layer 1 expansion and the necessity to enhance value propositions beyond mere scaling solutions. For more related insights, read about the rapidly evolving trends in Ethereum decentralization on our site here.
What’s Next / Market Impact
The development of ENSv2 is progressing unimpeded by the pause in Namechain development. Upcoming features of ENSv2 include streamlined, single-step registrations, the ability to purchase domains using stablecoins from various chains, and improved multi-chain support across more than 60 protocols, including Bitcoin and Solana. This progress indicates that users can expect a more cohesive and lower-cost experience on Ethereum’s L1, as lower fees further enhance the user experience when managing domain registrations. Economically, subsidizing transactions on Layer 1 is projected to be considerably less expensive than maintaining a separate L2 network, costing around $10,000 in 2025, in stark contrast to the higher expenses anticipated in operating Namechain, which would have been substantially costlier during peak periods, as noted by sources here and here.
