TL;DR
- Vitalik Buterin’s Praise: Ethereum co-founder Vitalik Buterin praised Celo for surpassing Tron in daily active stablecoin addresses, marking a significant milestone.
- CELO Token Surge: Following Buterin’s endorsement, Celo’s native token, CELO, surged by approximately 25%, reaching $0.68.
- Upcoming Upgrade: Celo is set to upgrade its Alfajores testnet to an Ethereum Layer 2 solution on September 26, aiming to enhance network capabilities and integrate more closely with Ethereum.
Ethereum co-founder Vitalik Buterin recently took to social media to commend Celo for a significant milestone in the blockchain space. On September 25, Buterin praised Celo for surpassing Tron in daily active addresses for stablecoins.
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
CELO, the native utility token of the Celo platform, saw a surge of approximately 25%, reaching $0.68. Following Buterin’s praise, highlighting the project’s recent success in increasing daily active stablecoin addresses, according to data from CoinMarketCap.
This achievement marks a notable shift in the competitive landscape of blockchain platforms focused on stablecoin transactions. In addition to celebrating Celo’s milestone, Buterin highlighted the upcoming upgrade of Celo’s Alfajores testnet to an Ethereum Layer 2 (L2) solution.
Scheduled for September 26, this transition will see Celo evolve from a standalone Ethereum Virtual Machine (EVM)-compatible layer-1 blockchain to an Ethereum L2. This upgrade aims to enhance network capabilities and integrate more closely with Ethereum’s expansive ecosystem.
Benefits of the L2 Shift
The shift to an L2 solution is expected to bring several benefits to the Celo network. By aligning more closely with Ethereum, Celo aims to empower its community to innovate with greater confidence and reach.
The transition will also facilitate better bridging between Celo and Ethereum, enabling functionalities that were previously not possible. This move is part of a broader strategy proposed by core Celo developer cLabs in July 2023, which includes operating two L2 testnets, Dango and Alfajores.
Growing Adoption of Stablecoins
Celo’s progress in the stablecoin sector has been remarkable in 2024. Major stablecoin operators like Circle and Tether have integrated Celo support, significantly boosting the platform’s adoption.
Circle launched the first USDC tokens on Celo in February 2024, amassing $40 million in supply. Similarly, Tether announced Celo integration for its USDT stablecoin in March 2024, with $209 million Celo-based USDT tokens in circulation as of September 25.
The Future of Celo
Buterin’s endorsement and Celo’s recent achievements have positioned the platform as a strong contender in the blockchain space. As Celo continues to grow and innovate, it remains to be seen how it will further impact the stablecoin market and the broader blockchain ecosystem.
