Ethereum co-founder Vitalik Buterin has called Celo’s upcoming move to an Ethereum Layer-2 solution a positive step. This shift, initiated by cLabs in July 2023, marks Celo’s transition from an independent, EVM-compatible layer-1 blockchain to an integrated Layer-2 within the Ethereum ecosystem.
This is amazing to see. Improving worldwide access to basic payments/finance has always been a key way that ethereum can be good for the world, and it’s great to see @Celo getting traction.
See also their recent posts:
* @Celo becoming an Ethereum L2: https://t.co/08U7G7q69s
*… https://t.co/Qq7vcmZ6e3— vitalik.eth (@VitalikButerin)
September 25, 2024
Celo wants to increase its adaptability and security while keeping its signature speed, low transaction costs, and user-friendliness. With this change, Celo will likely benefit from Ethereum’s robust ecosystem, creating more opportunities for developers.
Improved Connectivity and Security
One of the main technological advantages of Celo’s transition to Layer-2 is the addition of a native link between Celo and Ethereum. Token transfers across blockchains have always depended on external bridges, which can pose security risks.
Read also: DeFi vs. AI: Ethereum Co-Founder Predicts DeFi’s Triumph with Affordable L2s
By adopting native bridging, Celo will reduce these risks, providing a more secure and reliable experience for users working with both ecosystems. Additionally, the transition to Ethereum’s Layer-2 solution, using Optimism’s OP Stack, is reported to strengthen Celo’s alignment with Ethereum’s security and decentralization standards.
Increased User Activity and Stablecoin Usage
Celo’s transition has not only affected its technical infrastructure but has also led to significant changes in user activity. On September 16, 2024, Celo surpassed Tron in daily active addresses for stablecoin usage.
This increased activity aligns with Celo’s governance decision to transition to a Layer-2 solution and its growing connection with the Ethereum ecosystem. The shift has attracted developers and users drawn to the improved capacity and connectivity that Celo now offers through the OP Stack.
Celo’s active addresses have varied, particularly in mid-2024, as the transition progressed. However, the surge in late August showed the growing interest in the platform.
Following these developments, Celo saw a sharp price increase. Over the past 24 hours, Celo’s price jumped by 15.09%, reaching $0.616 with a trading volume of $84,308,248.
Source:
CoinMarketCap
The price rise came after a period of relative stability, during which Celo traded around $0.53. However, in the later part of September 25, 2024, a sharp increase pushed the price to over $0.65 before closing at $0.62.
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https://coinniu.com/celos-shift-to-layer-2-signals-growing-confidence-in-ethereum/
