As a seasoned crypto investor and tech enthusiast who has been following the blockchain landscape since its inception, I must admit that the recent developments surrounding Celo have caught my attention. Having closely watched Ethereum’s evolution and its impact on the crypto world, it is fascinating to see a project like Celo gaining traction as a “cultural extension” of Ethereum, as Vitalik Buterin himself put it.
In a recent post on the X platform, Ethereum co-founder Vitalik Buterin praised the Celo blockchain for hitting a fresh milestone of stablecoin use on the platform. Additionally, the Celo blockchain also surpassed the Tron blockchain network in terms of the daily active addresses for stablecoins.
According to blockchain data provider Artemis.xyz, Celo outpaced the Tron blockchain in terms of total active addresses during September 2024. This growth was linked to the increased adoption of stablecoins, which analysts at Artemis traced back to apps like Minipay and Valora. Since its debut in 2023, Minipay has managed to amass around 3 million active wallets by July 2024 on its own.
It’s thrilling to witness this! Enhancing global accessibility to fundamental transactions and finance is one of the ways Ethereum can benefit the globe, and it’s heartening to note that Celo is gaining popularity in this endeavor.
In addition, Buterin discussed the Celo blockchain as potential candidate for moving from functioning independently as a standalone Ethereum Virtual Machine (EVM)-compatible layer 1 (L1) blockchain to becoming a Layer 2 blockchain within the Ethereum ecosystem. This transformation would signify a change in role for Celo, transitioning from a primary blockchain protocol to a third-party solution, designed to enhance its network capabilities while seamlessly integrating with that base blockchain.
In response to the transition of Celo to a Layer 2 network, as proposed by its core developer cLabs in July 2023, the platform is now operating two Layer 2 test networks: Dango, launched in July 2024, and Alfajores, which is set for an upgrade to Layer 2 on September 26.
The transition from Language One (L1) to Language Two (L2) opens up several advantages that were previously unattainable in connecting Celo and Ethereum. In light of this change, Celo stated:
Transitioning into an L2 (Layer 2) solution will bring Celo’s infrastructure closer to Ethereum’s extensive network. This move gives our community the assurance and freedom to create more boldly, expanding their reach.
Celo – A Cultural Extension of Ethereum
On September 23rd, cLabs referred to Celo as a “cultural offshoot” or “branch” of Ethereum. This was an allusion to Vitalik Buterin’s post from May 2024, where he explained that Layer 2 solutions could be seen as extensions or expansions of the Ethereum culture.
Although Celo shares a common code lineage with Ethereum and retains full EVM compatibility for smart contracts, it operates on its own independent blockchain and differs from Ethereum in areas such as blockchain wallets.
Leading stablecoin operators like Tether (USDT) and Circle (USDC), both with minimal daily volatility, have significantly boosted the popularity of the Celo blockchain. For instance, Circle’s USDC has amassed over $40 million worth of its supply on the Celo network.
In a significant move, Tether, the leading issuer of stablecoins by market value, connected its USDT stablecoin with the Celo network back in March 2024. According to Tether’s Transparency reports as of September 25, there are around $209 million worth of USDT tokens tied to the Celo platform currently circulating.
Today, the CELO price has significantly increased by over 18%, reaching $0.635, while its daily trading volume has skyrocketed by an impressive 700%, amounting to approximately $119 million. The 24-hour volatility stands at a substantial 24.6%, and the market cap is currently valued at $367.16 million.
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2024-09-25 15:48