In February 2026, ENS marked a turning point by abandoning its Layer 2 project, Namechain, to remain on Ethereum L1. A decision which illustrates the rapid evolution of the Ethereum blockchain, now capable of competing with external scaling solutions. Decryption of the issues and impacts for crypto users.
In brief
- ENS abandons Namechain L2 to focus on Ethereum L1, thanks to a 99% reduction in gas costs.
- Ethereum updates, like Fusaka, have improved the scalability of L1, making L2s less essential.
- Crypto users benefit from a simplified experience, with reduced fees and enhanced security on Ethereum L1.
ENS abandons Namechain L2: a strategic revolution for Ethereum
ENS' announcement to abandon Namechain L2 in favor of Ethereum L1 surprised the crypto ecosystem. Originally designed to reduce costs and improve accessibility, Namechain has become obsolete in the face of Ethereum's increased scalability. Thanks to enabling updates like Fusaka, gas costs for ENS registrations have dropped by 99%! Making transactions on L1 more economical than ever.
This decision is part of a logic of simplification and security. Indeed, Ethereum L1 offers unparalleled infrastructure guarantees, eliminating the need for a dedicated L2 solution. For users, this means a smoother experience, with improvements like one-step registration and stablecoin purchases, 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 seen in the changing fees for ENS registrations. Between January and December 2025, the gas limit increased from 30M to 60M, drastically reducing fees for crypto users.
This increase in capacity made it possible to divide costs by 10, making Ethereum more accessible. Visual data confirms this trend. Median fees for ENS registrations followed a downward curve, correlated with the increase in the gas limit. For users, this translates into increased accessibility and reduced financial barriers.
Ethereum transaction fees, a key variable for crypto adoption?
Gwei transaction fees play a crucial role in Ethereum adoption. The 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 may increase costs slightly, but is 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 for development is promising: with future updates, these costs could further decrease. Which would strengthen the attractiveness of the blockchain and cause the price of ETH to explode.
ENS' decision to stay on Ethereum L1 marks a turning point in the crypto ecosystem. With lower transaction costs and improved scalability, Vitalik Buterin's blockchain proves that it can compete with L2 solutions. In your opinion, will L2s become obsolete as Ethereum evolves?
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