Celo’s Transition to a Layer-2 Network: A New Era in the Ethereum Ecosystem!

Jakarta, Pintu News—Celo, previously known as a layer 1 blockchain network, has officially joined the Ethereum ecosystem as a layer 2 network.

This transition not only expands Celo’s functionality but also opens a new chapter in blockchain technology integration. With the addition of Celo, the Ethereum ecosystem, already valued at over $455 billion, is further enriched with new applications and projects.

Check out the full news below!

Technology Transition and Development Process

Celo’s transition process to a layer 2 network began in July 2023 and involved various stakeholders, including validators and engineers from cLabs. They worked for over 20 months to ensure the transition went smoothly without disrupting existing network operations.

Celo’s layer 2 infrastructure was developed using Optimism’s OP Stack, which enables block times of almost one second and lower transaction fees.

The transition also marks the implementation of EigenDA technology within the Celo network, which allows users to pay for gas fees with tokens such as Tether USDT->Current USDT PriceRp 0Market Cap-Trading Volume-Circulating Supply- and USD Coin USDC->Current USDC PriceRp 0Market Cap-Trading Volume-Circulating Supply-. This innovation not only improves efficiency but also expands the network’s accessibility and ease of use for global users.

Read also: SEC Lead Candidate’s Wealth Reaches $327 Million, How Will It Affect Crypto Regulation?

Market Reaction and Economic Impact

The announcement of Celo’s transition to layer 2 has been met positively by the market, with the CELO token price increasing by over 12% in the last seven days. According to Coinmarketcap, the price of CELO is currently around $0.4.

This increase demonstrates investor confidence in Celo’s long-term potential as part of the Ethereum ecosystem. The transition is expected to bring greater transaction efficiency and lower fees, which will attract more developers and users to the ecosystem.

With a more robust and integrated infrastructure, Celo is poised to play a more significant role in decentralized finance DEFI->Current DEFI PriceRp 0Market Cap-Trading Volume-Circulating Supply-.

Also read: SEC Strengthens Regulation, 4 New Crypto Forums Held Throughout 2025!

Long-term Implications and Future Vision

According to Rene Reisberg, CEO of the Celo Foundation, this transition is the first of its kind in the Ethereum ecosystem. It will serve as a model for other EVM-compatible blockchains looking to become layer 2 networks. This shows Celo’s great potential to lead and inspire similar transformations in the future.

With a focus on real-world adoption and the security offered by Ethereum, Celo is uniquely positioned to bridge real-world needs with blockchain technology. This strengthens Celo’s position within the industry and promises continued growth and innovation within the wider ecosystem.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto Times. Celo Blockchain Joins Ethereum, Transits into Layer 2 Network. Accessed on March 27, 2025
• CoinDesk. Celo Migration to Layer 2 Network Is Done, Bringing in New Era for the Blockchain. Accessed on March 27, 2025
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