Celo Finally Becomes Ethereum L2 After Two Years of Hustling

Coinspeaker
Celo Finally Becomes Ethereum L2 After Two Years of Hustling

Celo, which was first launched as a proof-of-stake layer-1 blockchain in April 2020, has officially become an Ethereum layer-2 network after its long-awaited hard fork. 

🏡 @Ethereum, we're home!

Following a successful "hard hard fork" led by core contributors at @cLabs & L1 validators, Celo is officially an Ethereum Layer 2 🪨 🪨 🍴

What does that mean for the diverse, global decentralized ecosystem? Keep reading to find out ↓ pic.twitter.com/slW1W5oRmP

— Celo.eth 🦇 🌳 (@Celo) March 26, 2025

The successful migration was completed nearly two years after Celo’s initial proposal in July 2023. In April 2024, cLabs, the developer behind Celo, proposed to utilize Optimism’s OP Stack, an open-source framework for building L2 networks, for developing the new L2 blockchain.

And they did it.

Earlier today, Celo started its transition by halting its L1 block production. At around 04:10 UTC, cLabs announced that the “block production has officially resumed on Celo L2,” hinting at a successful migration.

✅ Block production has officially resumed on Celo L2.

Next up: Public RPC (Forno) and indexers coming online — stay tuned.

— cLabs | ⋐•𝕃 (@cLabs) March 26, 2025

Celo claims that the transition to L2 came as its ecosystem grew to over 1,000 projects in over 150 countries. According to the X post, the network has around 11 million active addresses and has processed more than 720 million transactions in its nearly five-year journey.

Thanks to the OP Stack framework, the new Celo L2 has decreased its block times from 5 seconds to 1 second. The L2 network benefits from Ethereum’s security and Optimism’s speed.

Celo now supports the Ethereum-native cross-chain bridging and users can also use various tokens like USDT and USDC to cover gas fees.

Celo Rising

Celo (CELO), the native token of the newly transitioned blockchain, saw a notable price hike following the migration announcement.

Celo is up 4.1% in the past 24 hours and is currently trading at $0.404. Its market cap is hovering close to the $230 million mark with a daily trading volume of $18.6 million.

Despite the recent price surge, Celo is still down by 96.2% from its all-time high of $10.66 on August 30, 2021. The token had a market cap of around $2.4 billion, making it one of the leading 100 crypto assets in the market.

Celo currently ranks as the 183rd-largest digital currency.

 

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Celo Finally Becomes Ethereum L2 After Two Years of Hustling