Celo's Layer-1 blockchain has completed its transformation into a Layer-2 on Ethereum, nearly 2 years after the proposal for the transition was approved.
Celo has completed the transition to Ethereum Layer-2
Celo first announced its intention to transform into Ethereum Layer-2 in July 2023, and it was approved with 128 out of 131 votes.
The orientation to become L2 on Ethereum will bring many benefits to Celo such as:
Strengthening the development orientation of Ethereum and EVM compatibility.
Inheriting the security of the Ethereum network.
Simplifying the liquidity flow process between the two chains.
After an 8-month-long evaluation and testing process with various scaling solutions such as Arbitrum Orbit, ZK Stack, or Polygon CDK, Celo decided to use OP Stack in April 2024.
The first step of the transition process was testing on the Dango layer-2 testnet in July of the same year. The relocation process went quite smoothly thanks to the support of many industry partners. However, there was one party that refused to support Celo's L2 transition, which is the Coinbase exchange.
However, the hard fork to L2 was initiated this morning, March 26, 2025, and successfully completed just over an hour later.
With the completion of L2, Celo's block creation time has decreased from 5 seconds to just 1 second. In the future, Celo's current validators will operate as decentralized sequencers, maintaining the property of one-block finality.
The price of CELO has increased by 21% in the past 14 days, a positive response to the news of the transition to L2. However, CELO has decreased by 96% in value compared to its ATH of 9.8 USD set in August 2021.
CELO's price volatility over a 7-day frame, screenshot from CoinGecko at 12:00 PM on March 26, 2025
#news $BTC $ETH