The Ethereum Name Service (ENS) team has revealed details about its new Layer 2 solution, set to be launched under the name Namechain.

Announced live at #frENSday🎤

Namechain by @ensdomains , a purpose-built Layer 2 solution!

This is the next evolution in ENS and part of the larger ENSv2 direction. By dramatically reducing costs, improving performance, and providing a familiar Ethereum developer experience our… pic.twitter.com/bIwHa22vJL
— ens.eth (@ensdomains) November 11, 2024

This announcement led to a 15% increase in the price of the ENS token, reaching $22. However, by the time of writing, the price stabilized at $19.70. Throughout the day, the asset decreased by 0.5%, according to data from CoinGecko.

“With the launch of ENSv2 and Namechain, domain registration, record updates, and decentralized website management will become much simpler,” said Greg Skril, head of developer relations at ENS Labs.

ENS team member Jeff Lau clarified that the .eth domain will remain linked to the mainnet, while ENS expands support for other Layer 2 solutions for Ethereum.

According to Lau, the launch of this solution was made possible by the desire to create a more user-friendly interface, rather than integrating it into other blockchains.

Looking back at recent updates, ENS Labs announced in February the expansion of its infrastructure to Layer 2 protocols, as part of its new initiatives.

In February, the largest DEX, Uniswap, launched subdomains like uni.eth using ENS technology. This experience was later replicated by the Base team, which implemented the Basenames system.

Additionally, in September, ENS was integrated into platforms by developers of popular services such as PayPal and Venmo.