Stablecoins have seen Celo user numbers grow by 23% over the past month, according to data from the Artemis platform.
The Celo blockchain has been experiencing a notable increase in its user base since the integration of stablecoins, a milestone that was celebrated by Ethereum co-founder Vitalik Buterin last week.
According to the platform's data, Celo registered one million monthly active addresses last month, which represents a 23% growth compared to the previous month's data.
This significant growth in Celo's user base is mainly attributed to the growing adoption of stablecoins on the network, which has encouraged its adoption, thanks to the ease that Celo allows users to carry out operations from their mobile phones and the simplicity that stablecoins provide for sending payments and remittances.
Celo adoption driven by stablecoins
Celo has seen a significant increase in the use of stablecoins, which are cryptocurrencies designed to maintain a stable value as they are typically pegged to a fiat currency such as the US dollar.
On the Celo network, Celo USD (cUSD) accounts for 43% of the stablecoin market, while Tether (USDT) and USD Coin (USDC) have 30% and 27% shares, respectively. According to the platform’s data, the growing demand and use of these stablecoins on Celo has boosted their supply by more than 600%, from around $45 million at the beginning of the year to more than $290 million on the blockchain today.
The data shows that this growing use of stablecoins on Celo has been a key factor in the increase in its number of monthly users.
Source: Artemis
Celo experiences an exponential increase in activity
Activity on the Celo network is experiencing notable growth in terms of transactions. In September, The network recorded a 219% increase in the volume of processed transactions, reaching $34,5 million, compared to the $10,8 million it processed in January.
Data shows that the volume of smaller transactions, ranging from $1 to $10, has grown by nearly 300% from March to September. On the other hand, the volume of medium-sized transfers, ranging from $10 to $100, has seen a 400% increase in the same period. Likewise, the volume of larger transfers, exceeding $1.000, has seen a staggering 900% increase on the network.
Source: Artemis
Market analysts have highlighted this exponential increase in blockchain transactional activity as a reflection of the demand for stablecoins, in addition to the confidence that the platform provides to users to carry out their transactions safely and economically.
On the other hand, the growth in the number of users and transactions on Celo is also due to the proliferation of applications that facilitate the use of stablecoins, and which have had a significant impact in expanding the use of the network, especially in regions with needs for accessible financial solutions.
The transition from Layer 1 to Layer 2
As reported by this outlet, Celo is in the process of transitioning to become an Ethereum-based Layer 2 solution, which promises to further improve network speed and reduce transaction costs. This transition, which will integrate Celo into the Ethereum ecosystem, could also significantly contribute to the growth of the blockchain, attracting more users and developers to its blockchain platform.
Overall, stablecoin adoption is proving instrumental to Celo’s growth, driving a significant increase in its user base and transactional activity. Now, as the network continues to evolve and improve its integration with Ethereum, even greater growth in global usage is expected.
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