Celo and Ethereum: Vitalik Buterin Praises Celo’s Milestone in Stablecoin Adoption
Celo and Ethereum– Ethereum co-founder Vitalik Buterin recently highlighted a significant achievement for the Celo blockchain, specifically its success in stablecoin usage. In a post on X dated September 25, Buterin praised Celo for surpassing Tron in terms of daily active addresses for stablecoins.
“This is amazing to see. Improving worldwide access to basic payments and finance has always been a key way that Ethereum can be good for the world, and it’s great to see Celo getting traction,” he remarked.
Transitioning to Ethereum Layer 2
In his announcement, Buterin also noted that Celo is preparing to transition from a standalone Ethereum Virtual Machine (EVM)-compatible layer-1 blockchain to an Ethereum layer 2 solution. This shift signifies a transformation for Celo from a base blockchain protocol to a third-party protocol designed to enhance network capabilities and integrate functionality with Ethereum’s base blockchain.
As part of this transition, proposed by core Celo developer cLabs in July 2023, Celo currently operates two layer 2 testnets: Dango, which launched in July 2024, and Alfajores, set to upgrade to L2 on September 26.
Strengthening Ties with the Ethereum Ecosystem
Celo emphasized the importance of this evolution, stating, “Celo’s evolution from an L1 EVM-compatible chain to an L2 solution marks a significant milestone in our ongoing relationship with the Ethereum ecosystem.” The integration will bring numerous benefits, facilitating better connectivity between Celo and Ethereum, which were previously unattainable.
Becoming an L2 not only aligns Celo more closely with Ethereum’s expansive network but also empowers our community to innovate with greater confidence and reach, the Celo team added.
On September 23, cLabs characterized Celo as a cultural extension of Ethereum, referencing Buterin’s earlier comments on layer 2 solutions. While Celo shares its code lineage with Ethereum and maintains full EVM compatibility, it operates on an independent blockchain, distinguishing itself in several aspects.
Surge in Stablecoin Adoption on Celo
Celo has witnessed a remarkable increase in adoption among major stablecoin operators throughout 2024. Circle, the issuer of the second-largest stablecoin, USD Coin (USDC), launched its first tokens on Celo in February. As of now, USDC has amassed a supply of $40 million issued on the Celo blockchain.
Additionally, Tether, the largest stablecoin operator by market capitalization, announced its integration with Celo for its USDt (USDT) stablecoin in March. According to Tether Transparency, there are currently $209 million worth of Celo-based USDT tokens in circulation as of September 25, representing 0.18% of Tether’s total USDT supply.
Recent analysis by Artemis.xyz indicates that Celo has overtaken the Tron blockchain in terms of daily active addresses for stablecoin transactions in September 2024. The rise in stablecoin adoption has been significantly driven by applications such as Minipay and Valora, with Minipay alone achieving 3 million activated wallets by July 2024 since its launch in 2023.
In summary, Celo’s advancements in stablecoin integration and its shift to Ethereum Layer 2 are pivotal milestones that not only enhance its capabilities but also strengthen its ties with the broader Ethereum ecosystem.
FAQs
What is Celo?
Celo is a blockchain platform designed to enhance financial inclusion and improve access to basic payments and financial services globally. It supports the creation and use of stablecoins and is compatible with Ethereum’s ecosystem.
Why did Vitalik Buterin praise Celo?
Vitalik Buterin praised Celo for surpassing Tron in daily active addresses for stablecoins, highlighting its role in improving global access to payments and finance.
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