Nikolas Sargeant
Vitalik Buterin, the co-founder of Ethereum, has recently commended the Celo Network for its impressive growth and transition to an Ethereum Layer-2 solution. Celo, a mobile-first blockchain platform, has seen a significant increase in daily active addresses, surpassing even Tron in terms of stablecoin usage.
"It's amazing to see Celo's growth," Buterin remarked. "Improving worldwide access to basic payments and finance has always been a key way that Ethereum can benefit the world, and it's great to see Celo gaining traction in this area."
Data from Artemis reveals that Celo, now an Ethereum Layer-2 network, has processed a substantial volume of stablecoin transactions in a short period. According to Tokenterminal, Celo has experienced a surge in daily active users this year, approaching 700,000 daily active addresses.
Artemis noted that "transfer sizes across all buckets are growing, indicating that it is not just addresses spamming the network with very small transactions."
Celo's Transition to Layer-2
Celo recently announced its evolution from a standalone EVM-compatible Layer-1 blockchain to an Ethereum Layer-2 solution. This transition aims to maintain the network's user-friendly experience, including low costs and ease of use. Celo is currently operating two Layer-2 tenets: Dango, which is already live, and Alfajores, scheduled for an upgrade on September 26.
The network's shift to Layer-2 aligns with Buterin's recent focus on cross-chain interoperability between Ethereum Layer-2 networks. Last month, Buterin outlined promising approaches to address cross-L2 interoperability challenges.
Market Impact and Future Prospects
Following Buterin's endorsement, Celo's native token, CELO, experienced a modest rally on Binance, with its price rising from $0.55 to $0.69. As of the latest update, CELO is trading at $0.66, according to Coinmarketcap.
Celo's growth trajectory and transition to Layer-2 status position it as a significant player in the evolving Ethereum ecosystem. With backing from major investors like a16z and Coinbase Ventures, who contributed over $100M in 2020, Celo appears well-equipped to continue its expansion and innovation in the blockchain space.
