Celo blockchain starts functioning as an Ethereum-based L2-network

Previously, the project existed as a separate Layer 1 blockchain

26.03.2025 - 10:50

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What’s new? The Celo blockchain team has integrated it into the Ethereum ecosystem. Celo originally existed as a standalone Layer 1 (L1) blockchain, but after the migration, it became a Layer 2 (L2) network based on the Ethereum blockchain. CLabs, the project’s main developer, first proposed Celo’s migration from L1 to L2 in July 2023.

Material by The Block

What else is known? The official transition began on the mainnet on March 26, when block production in Celo L1 was halted.

The goal was to integrate Celo more closely with Ethereum, the largest and oldest smart contract platform.

This would allow Celo to capitalize on the security and extensive developer ecosystem of Ethereum, while addressing the scalability and interoperability issues Celo faced as an independent blockchain.

The development of Celo L2 used OP Stack, a customizable toolkit from the Ethereum L2 network Optimism team. This means that Celo now functions as an optimistic rollup. Such protocols improve performance by grouping transactions.

As a result, the migration will leverage Ethereum’s security mechanisms while keeping Celo’s transactions low-cost and fast.

It enables Celo to natively connect to the Ethereum mainnet and other L2 networks via the cross-chain protocol for asset transfer, while the time to create a new block is reduced from 5 to 1 second.

Since day one, Celo’s partners as an L2-network have included custodian Fireblocks, the Aave and Uniswap protocols, the Yellowcard exchange, and others.

The native token CELO ranks 262nd in the overall cryptocurrency market capitalization ranking with a figure of $225 million and is trading at $0,3979, having added 1,3% overnight. Over the past two weeks, it has gained 19%, but the asset’s value has declined by 70% over the year.

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