Ethereum co-founder Vitalik Buterin continues to closely follow developments in blockchain technology. Recently, Buterin expressed his support for Celo via social media platform X, praising the blockchain’s success in stablecoin usage. Celo’s daily active address count has surpassed that of Tron, which Buterin described as a significant milestone. He highlighted Celo’s strong ties to the Ethereum ecosystem and its potential to improve access to global finance, calling the platform’s progress exciting.
Vitalik Buterin Backs Celo
Vitalik Buterin is following the developments on the Celo blockchain with keen interest, especially its significant breakthrough in stablecoin usage. On September 25, Buterin took to X, pointing out that Celo had surpassed Tron in daily active addresses in altcoin usage. “This is truly incredible. Improving access to basic payment systems and finance around the world is critical. This has been one of the key ways Ethereum has been good for the world. It’s great to see Celo gaining momentum in this area,” Buterin shared.
This is amazing to see. Improving worldwide access to basic payments/finance has always been a key way that ethereum can be good for the world, and it’s great to see @Celo getting traction.
See also their recent posts:
* @Celo becoming an Ethereum L2: https://t.co/08U7G7q69s
*… https://t.co/Qq7vcmZ6e3
— vitalik.eth (@VitalikButerin) September 25, 2024
Buterin also revealed that Celo will transition from an independent Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain to an Ethereum Layer 2 (L2) protocol. This move signals Celo’s shift from a core blockchain protocol to a third-party protocol with enhanced network capabilities. The transition to L2 has been part of a plan proposed by cLabs, Celo’s main developer team, in July 2023. As part of this initiative, Celo operates two L2 testnets, with the Dango testnet launching in July 2024, and the Alfajores testnet expected to be upgraded to Ethereum L2 on September 26, 2024.
Strong Ties Between Celo and the Ethereum Ecosystem
Celo has emphasized its strong connections to the Ethereum ecosystem, noting that the move to L2 represents a crucial milestone in their relationship. The team behind Celo believes that this transition will establish bridges between Celo and Ethereum that were previously not possible. “Becoming L2 not only ties Celo more closely to Ethereum’s broad network but also empowers our community to innovate with greater confidence and access,” says Celo.
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The cultural context behind this move was explained by cLabs in a post on September 23, where Celo was described as a “cultural extension of Ethereum.” This idea stems from Buterin’s May 2024 article titled “Layer 2s as Cultural Extensions of Ethereum.” Celo shares the same roots as Ethereum in terms of its codebase and maintains full EVM compatibility for smart contracts, but as an independent blockchain, it also has some distinct features, particularly in its blockchain wallet functionalities.
In 2024, Celo has seen significant adoption by major stablecoin operators. In February 2024, Circle, the operator of the second-largest stablecoin USDC, launched USDC tokens on the Celo network. Since then, $40 million worth of USDC has been issued on Celo. In March 2024, Tether, the largest stablecoin operator, announced its integration with Celo and officially launched Celo-based USDT tokens. As of September 25, Tether data indicates that there is $209 million worth of Celo-based USDT in circulation, representing 0.18% of Tether’s total USDT supply.
Celo Surpasses Tron
According to blockchain data provider Artemis.xyz, Celo surpassed Tron in daily active addresses for stablecoin usage in September 2024. Analysts at Artemis attribute this growth to applications like Minipay and Valora. Minipay, which launched in 2023, reached 3 million active wallets by July 2024. Celo’s rising stablecoin usage demonstrates the platform’s potential to reach a broader audience. As Buterin noted, Celo’s strong relationship with Ethereum and its increasing stablecoin adoption position it for continued growth.
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