Ethereum co-founder Vitalik Buterin has publicly praised Celo for a major achievement in the use of stablecoins on its blockchain. In a post on X (formerly Twitter) on Sept. 25, Buterin commended Celo for surpassing Tron in daily active addresses for stablecoins, highlighting the platform’s growing role in improving global access to finance.
“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,” Buterin remarked, emphasizing the importance of stablecoins in facilitating financial inclusion.
Celo is preparing to make a significant technical shift from a standalone Ethereum Virtual Machine (EVM)-compatible layer-1 blockchain to an Ethereum layer 2 (L2). On Sept. 26, Celo’s Alfajores testnet will be upgraded to L2, marking a new chapter in Celo’s evolution. This transition follows the July 2023 proposal by core developer cLabs to integrate Celo more deeply with Ethereum’s ecosystem.
The move to L2 will strengthen Celo’s ties with Ethereum, allowing for better interoperability and enhanced functionality that was not previously possible. Celo noted that becoming an L2 will empower its community with greater confidence and the ability to innovate within the larger Ethereum ecosystem.
In a post, Celo described this transition as a “cultural extension” of Ethereum, referencing a May article by Buterin about Layer 2s functioning as cultural extensions of Ethereum. Although Celo has maintained EVM compatibility, its independent blockchain and unique features, such as blockchain wallets, distinguish it from Ethereum.
Celo’s rise in stablecoin usage has been fueled by the support of major operators like Circle and Tether. In 2024, Circle launched its USD Coin (USDC) on Celo, with $40 million in supply issued on the platform. Tether followed suit in March, integrating its USDt stablecoin, and as of Sept. 25, there are $209 million worth of Celo-based USDT tokens in circulation.
According to blockchain data provider Artemis.xyz, Celo’s stablecoin activity has surpassed that of the Tron blockchain in daily active addresses. Analysts attribute this surge to the success of apps like Minipay and Valora, which have driven the widespread adoption of stablecoins. Minipay alone activated 3 million wallets by July 2024, playing a significant role in this growth.