Activity on Celo, a layer 1 blockchain supporting decentralized applications (dapps), has been intensifying lately. At the beginning of July, the number of daily transactions crossed the 1 million mark for the first time in 2024. At the end of 2023, Celo experienced a short-term spike in transaction count, surpassing 13 million – the highest level on record.

Meanwhile, the number of daily active users peaked earlier in July at over 716,000, according to data from Token Terminal.

Data from Celo’s official explorer shows that June has been the best month in terms of active users so far, but July might be on track to update the record.

Celo is a layer 1 blockchain network and ecosystem focusing on mobile-first dapps and smart contracts. Besides its mainnet, it also provides various SDKs and tools for integrating its blockchain network, aiming at financial applications.

The network was very active in decentralized finance (DeFi) during its 2021 boom, but it has lost significant traction since then. Its total value locked (TVL) has dropped from approximately $1 billion in October 2021 to about $100 million as of this writing.

The most active DeFi apps on Celo are multi-chain dapps, suggesting that Celo’s native ecosystem is weak compared to other established chains. The top three largest DeFi apps on Celo are Mento, Uniswap, and Curve DEX.

Celo Transitions to Layer 2 to Integrate with Ethereum

To increase its presence in DeFi, Celo is looking for methods to integrate with Ethereum.

On July 7, Celo launched its native scaling solution for Ethereum called Dango. Currently in testnet mode, the layer 2 network will become Celo’s flagship network.

The Celo community voted to gradually transition from its current layer 1 format to a more efficient Ethereum layer 2 network, competing with the likes of Base, Optimism, Arbitrum, or Blast.

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The post Celo’s Active Addresses Hit Record as the Blockchain Transitions to Layer 2 appeared first on NFTgators .