Ethereum co-founder Vitalik Buterin has referred to as Celo's transition to an Ethereum Layer 2 answer a optimistic step. The transition, which was initiated by cLabs in July 2023, sees Celo shifting from an unbiased EVM-compatible Layer 1 blockchain to an built-in Layer 2 inside the Ethereum ecosystem.

Celo desires to enhance adaptability and safety whereas sustaining its signature pace, low transaction prices, and ease of use. This modification will possible permit Celo to profit from Ethereum's strong ecosystem, creating extra alternatives for builders.

Improved connectivity and safety

One of many principal technical advantages of Celo’s transfer to Layer 2 is the addition of a local hyperlink between Celo and Ethereum. Token transfers between blockchains have all the time relied on exterior bridges, which may pose safety dangers.

Additionally learn: DeFi vs. AI: Ethereum co-founder predicts DeFi win with inexpensive L2

Celo will mitigate these dangers by adopting native bridging, offering a safer and dependable expertise for customers working in each ecosystems. Moreover, the transfer to Ethereum's Layer 2 answer with Optimism's OP Stack will reportedly higher align Celo with Ethereum's safety and decentralization requirements.

Elevated Consumer Exercise and Stablecoin Use

Celo's transition not solely affected its technical infrastructure, but in addition led to vital adjustments in person exercise: on September 16, 2024, Celo surpassed Tron within the variety of each day lively addresses in stablecoin utilization.

This enhance in exercise coincides with Celo's governance determination to maneuver to a Layer 2 answer and its rising ties to the Ethereum ecosystem. This transition has attracted builders and customers interested in the elevated capability and connectivity that Celo now gives by means of its OP stack.

Celo's lively addresses have modified because the transition has progressed, significantly in mid-2024, however a spike in late August signifies rising curiosity within the platform.

Following these developments, the value of Celo has skyrocketed: prior to now 24 hours, the value of Celo has elevated by 15.09%, reaching $0.616 on a buying and selling quantity of $84,308,248.

The worth enhance got here after a comparatively steady interval through which Celo was buying and selling round $0.53, however a pointy rise afterward September 25, 2024, took the value above $0.65 earlier than closing at $0.62.