ENS abandons Namechain: Ethereum the master of the game?

In February 2026, ENS marked a turning point by abandoning its Layer 2 project, Namechain, to stay on Ethereum L1. A decision that illustrates the rapid evolution of the Ethereum blockchain, now able to compete with external scaling solutions. Analysis of the stakes and impacts for crypto users.

ENS abandons Namechain L2: a strategic revolution for Ethereum

ENS’s announcement to abandon Namechain L2 in favor of Ethereum L1 surprised the crypto ecosystem. Initially designed to reduce costs and improve accessibility, Namechain became obsolete facing Ethereum’s increased scalability. Thanks to activation of updates like Fusaka, gas costs for ENS registrations fell by 99%! Making transactions on L1 more economical than ever.

This decision fits a logic of simplification and security. Indeed, Ethereum L1 offers unmatched infrastructure guarantees, eliminating the need for a dedicated L2 solution. For users, this means a smoother experience, with improvements like one-step registration and purchases in stablecoins, all without leaving Ethereum. ENSv2, now deployed on L1, remains interoperable with other L2s, thus preserving flexibility for developers.

The impact of Ethereum gas limit increases on transaction costs

Recent increases in the Ethereum gas limit have had a direct impact on transaction costs, as shown by the changes in fees for ENS registrations. Between January and December 2025, the gas limit rose from 30M to 60M, drastically reducing fees for crypto users.

This capacity increase has allowed costs to be divided by 10, making Ethereum more accessible. Visual data confirms this trend. Median fees for ENS registrations have followed a downward curve correlated with the gas limit increase. For users, this translates into increased accessibility and reduced financial barriers.

Ethereum transaction fees, a key variable for crypto adoption?

Transaction fees in gwei play a crucial role in Ethereum adoption. Low (0.03 gwei), medium (0.03 gwei), and high (0.033 gwei) levels directly influence the final cost for crypto users. A high priority can slightly increase fees, but remains negligible compared to past costs.

This fee stability is a major asset for Ethereum. Indeed, it allows projects like ENS to offer competitive services while attracting new users. The outlook is promising: with future updates, these costs could decrease further. This would strengthen the blockchain’s attractiveness and could make the ETH price skyrocket.

ENS’s decision to remain on Ethereum L1 marks a turning point in the crypto ecosystem. With falling transaction costs and improved scalability, Vitalik Buterin’s blockchain proves it can compete with L2 solutions. In your opinion, will L2s become obsolete due to Ethereum’s evolution?