Celo Transitions to Ethereum Layer-2 Network
Celo has officially transitioned to an Ethereum layer-2 network following a significant hard fork, marking a pivotal change for the blockchain. Initially launched in April 2020 as a proof-of-stake layer-1 blockchain, this upgrade is seen as a major milestone for Celo’s ongoing development and integration within the Ethereum ecosystem.
A Long-Awaited Migration
The migration to layer-2 comes nearly two years after Celo first proposed this initiative in July 2023. In April 2024, cLabs, the organization behind Celo, suggested employing Optimism’s OP Stack—an open-source framework designed for creating layer-2 networks—to facilitate the new blockchain’s development. This plan has now come to fruition, with Celo recently halting its layer-1 block production to initiate the transition. cLabs confirmed that block production has successfully resumed on Celo’s layer-2 network.
Growth and Ecosystem Expansion
Celo’s move to layer-2 is primarily driven by the rapid expansion of its ecosystem, which now encompasses over 1,000 projects across more than 150 countries. Currently, the network boasts around 11 million active addresses and has processed over 720 million transactions in its nearly five years of operation. The integration of the OP Stack framework has significantly improved performance, reducing block times from 5 seconds to just 1 second. Leveraging the security of Ethereum and the speed provided by Optimism, Celo now accommodates Ethereum-native cross-chain bridging and enables users to pay gas fees using a variety of tokens, including USDT and USDC.
Celo Token Sees Price Surge
The announcement of Celo’s migration has positively impacted the price of its native token, CELO, which rose by 4.1% within the last 24 hours, reaching a trading price of $0.404. With a market capitalization approaching $230 million and a daily trading volume of $18.6 million, CELO has shown signs of recovery. However, it is important to note that despite this recent price increase, the token’s value remains significantly below its all-time high of $10.66 recorded on August 30, 2021, reflecting a 96.2% decline from that peak. Currently, Celo ranks as the 183rd largest cryptocurrency by market capitalization.
Disclaimer
This report is intended to provide unbiased and transparent coverage of developments in the crypto market. While efforts have been made to ensure the accuracy and timeliness of the information presented, it should not be construed as financial or investment advice. Given the volatile nature of market conditions, individuals are encouraged to conduct their own research and consult with a financial professional before making any investment decisions based on this information.
