- Vitalik Buterin, the Ethereum co-founder, has hailed Celo’s move to migrate to Ethereum Layer 2. He says such a project could extend financial services worldwide.
- Based on daily active addresses, Celo has become the second most popular platform for stablecoin transactions behind TRON.
- Recent $200 million USDT stablecoin minting on Celo illustrates its growing demand.
Vitalik Buterin has congratulated Celo on the recent migration to the Ethereum Layer-2 network. Buterin has spoken on how Celo is providing a service to bring financial services at the grassroots level worldwide. Buterin is of the view that such progress mentioned above tends to have a positive impact on Ethereum’s 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
The blockchain platform has become the second most popular for stablecoin transactions concerning daily active addresses after TRON. This success points to the increasing use of Celo in the digital economy. Buterin pointed to Celo’s strong fundamentals, pointing to the growth in the value of stablecoin transactions on the network.
These scenarios include the recent $200 million USDT stablecoin minting. This step suggests an increasing need for Celo’s features. Buterin’s continued backing of Celo means that the project can help expand DeFi to include efficient solutions in the future.
Celo Migrates to Ethereum Layer-2 Network
Shifting from an independent Layer-1 blockchain to Ethereum Layer-2 opens Celo to the benefits accrued from the Ethereum ecosystem without sacrificing the accruable benefits. This network is associated with rapid, cheap, and convenient access. These features are expected to persist since Celo will be fully integrated with Ethereum in the future.
The cLabs development team suggested this switch in July 2023 to move towards a more sustainable digital economy. Celo has released two Layer-2 testnets to guarantee compatibility and stability: Dango and Alfajores. Dango was launched in July, and Alfajores is scheduled for a change on September 26.
Soon, Celo will launch its Layer-2 mainnet in early November. The testnets are an important intermediate stage in preparation for a successful launch. This will help strengthen the Ethereum community and build a bigger development ecosystem focused on open-sourced solutions.
Buterin Warns of Layer-2 Project Failures
However, Buterin also recently pointed out that some Layer-2 projects may fail. He gave the companies until December to report on their effectiveness. This benchmark advances blockchain development and creates a new cryptographic trust system.
This is because Celo has shifted to Layer 2, which could make it a dominant player in this new phase. The network focuses on keeping the app intuitive and straightforward, charging low transaction fees, and putting it in a good place in the market. In addition, the planned mainnet launch is a crucial event that may help Celo find its place in the blockchain industry.
