Celo, a layer 1 blockchain network, has seen a surge in activity recently, with daily transactions surpassing 1 million for the first time in July 2024. The network, which supports decentralized applications (dapps) and smart contracts, also witnessed a record number of active users in June. Despite losing traction in the decentralized finance (DeFi) sector since its 2021 boom, Celo is making strides to strengthen its presence in the DeFi space.

The network is transitioning to a layer 2 format to integrate with Ethereum, with the launch of its native scaling solution, Dango, currently in testnet mode. This move is aimed at enhancing efficiency and competitiveness against other Ethereum layer 2 networks. However, the most active DeFi apps on Celo are multi-chain dapps, indicating that Celo's native ecosystem still has room for growth compared to other established chains.

Despite a drop in its total value locked (TVL) from $1 billion in October 2021 to about $100 million, Celo's transition to layer 2 and its focus on mobile-first dapps and financial applications could potentially reinvigorate its standing in the DeFi sector.