The Celo blockchain ecosystem is gaining momentum after Ethereum co-founder Vitalik Buterin highlighted the global accessibility of payments offered by the network.
Ethereum co-founder Vitalik Buterin has expressed his support for blockchain platform Celo, highlighting its growth and potential in the global payments space.
Buterin's endorsement, who highlighted the improvements that Celo stablecoins are bringing to access to digital finance worldwide, has led to a remarkable 16% increase in the price of the CELO cryptocurrency. According to CoinMarketCap data, the price of CELO It went from trading at around $0,55 to more than $0,65 in the last few hours. This increase in value reflects the growing interest and confidence that investors have in this cryptocurrency, thanks to its ability to improve access to financial services worldwide.
Stablecoin activity on Celo increases
Buterin has highlighted the growth of Celo adoption as a platform for financial transactions. Through his official account on X, Buterin commented: “It’s amazing to see this. Improving global access to payments and finance has always been a key way Ethereum can do good for the world, and it’s great to see Celo gaining traction.”
The Celo platform has proven to be an effective tool for facilitating low-cost payments and financial services, attracting the attention of both users and investors.
Artemis, a platform that provides data and metrics on cryptocurrencies and blockchain, also commented on X about the growth of payments on Celo through stablecoins. The platform he highlighted that stablecoin transfers on this blockchain are increasing, suggesting that Celo addresses are not making small spam transactions, but are actively participating in the crypto financial ecosystem.
Celo: A transition from Layer 1 to Layer 2 of Ethereum
Celo developers announced this year the process of migrate from an independent Layer 1 blockchain to a Layer 1 solution based on the Ethereum blockchain infrastructure. This change, as reported by this media, seeks to improve the accessibility of the network's developer and user community to blockchain liquidity.
As part of this change, Celo developers are preparing this September 26 to launch the second test network, called Alfajoresl, which follows Dango, which was implemented in July.
With this transition, cLabs, the team behind Celo, also seeks to improve scalability and reduce transaction costs of the network, which in turn will also facilitate greater integration with the Ethereum ecosystem, which is considered the most important in terms of the development of decentralized applications (DApps) and smart contracts.
The implications of Celo's transition for the digital ecosystem
Previously, Buterin has commented on the advantages of layer-2 networks, stating that they allow for the emergence of subcultures that can learn and adapt to be effective in the real world. Celo becoming an L2 not only aligns more closely with Ethereum, but also opens up new opportunities for collaboration and the development of public goods in the blockchain space.
On the other hand, Buterin’s endorsement of Celo and its growing use of stablecoins has significant implications for the cryptocurrency ecosystem at large. With the integration of stablecoins like USDT and USDC on this blockchain, an environment is being created that not only fosters innovation but also promotes financial inclusion.
To date, Celo has seen a notable rise in stablecoin adoption, with Tether minting around $200 million worth of USDT on the network. According to experts, this increase suggests a growing demand from DeFi platform users, who are looking for more accessible and affordable alternatives in the crypto space.
