Ethereum co-founder Vitalik Buterin praised Celo as the blockchain platform continues to gain traction in its push for a better digital economy.
Celo recently passed TRON in daily active addresses for stablecoin usage, catching Buterin’s eye as the network is also considering migration to an Ethereum Layer-2 (L2).
Vitalik Buterin Endorses Celo as Stablecoin Traffic Peaks
Buterin praised Celo’s efforts to enhance global access to basic payments and financial services. He suggested that these actions could help improve Ethereum. He also endorsed Celo for offering decentralized financial (DeFi) services with low transaction costs.
Buterin pointed to bullish fundamentals around Celo, as reported by Artemis. Notably, Celo recently surpassed TRON in daily active addresses for stablecoin usage metrics.
“Transfer sizes across all buckets are growing, indicating it is not that addresses are spamming the network making very small transactions. Stablecoin supply on Celo has grown significantly in the past year as well,” Artemis wrote.
Read more: Layer 1 vs. Layer 2: What Is the Difference?
Artemis also highlighted Tether’s move to mint $200 million worth of USDT stablecoin on Celo, suggesting future demand. These remarks come as Celo transitions from a standalone EVM-compatible Layer-1 blockchain to an Ethereum Layer-2, aligning with Buterin’s views.
“Layer 2 networks allow subcultures to emerge that are armed with substantial resources, and a feedback loop that forces them to learn and adapt to be effective in the real world,” Buterin wrote in a recent blog.
Celo Transitions to Ethereum L2
Celo’s transition to Ethereum Layer-2 stems from a July 2023 proposal by cLabs, the team behind core products and tools for the Celo blockchain. This shift aims to support a regenerative digital economy while preserving Celo’s key features: speed, low costs, and user-friendly design.
Currently, Celo is operating two Layer-2 testnets. The first, Dango, went live in July, while the second, Alfajores, is set for a Layer-2 upgrade on September 26.
“By transitioning to an L2, Celo strengthens this bond, allowing our developers and protocols to immerse themselves even deeper into the vibrant, collaborative Ethereum community. This integration enhances opportunities for open-source contributions, joint initiatives, and the development of public goods, ensuring that Celo’s impact resonates widely across the blockchain space,” Celo shared in a blog.
Celo’s Layer-2 mainnet is set to launch in early November, with the Dango and upcoming Alfajores testnets paving the way to ensure smooth compatibility ahead of the launch.
However, despite the excitement surrounding Celo’s transition, it’s important to note that Vitalik Buterin recently warned that some Layer-2 projects may “go bust.” He set a December deadline as a benchmark for success, aiming to advance cryptographic trust and push blockchain development into a new era — one in which Celo could play a role.
Read more: Layer-2 Crypto Projects for 2024: The Top Picks
Amid Buterin’s praises, the CELO token has surged over 16% since Wednesday’s session, now trading at $0.626.
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