Celo Completes Transition to Ethereum Layer 2 After Two-Year Effort
Celo, initially launched as a standalone, Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain, has successfully transitioned to an Ethereum Layer 2 network. This marks a major step toward enhancing its security, scalability, and interoperability within the Ethereum ecosystem.
The transition was initiated in July 2023 when cLabs proposed the migration to leverage Ethereum’s robust security framework and extensive developer community. After a series of tests, governance discussions, and a community vote in July 2024, the migration was completed on March 26, 2025, at block height 31,056,500.
By adopting Optimism’s OP Stack and integrating EigenDA for data availability, Celo maintains its hallmark low transaction fees—approximately $0.0005—while ensuring near-instant transaction speeds of around one second. This technical shift positions Celo as a more efficient and cost-effective blockchain for decentralized applications (dApps) and financial services.
The move is expected to strengthen Ethereum’s ecosystem by integrating Celo’s mobile-first approach and expanding accessibility for users in emerging markets. With this transition, developers building on Celo can now seamlessly tap into Ethereum’s broader liquidity, tooling, and security infrastructure, fostering more adoption and innovation in decentralized finance (DeFi).
Additionally, Celo’s shift to Layer 2 opens doors for new partnerships and institutional adoption. The network is reportedly exploring collaborations with major fintech companies and decentralized applications to bring more real-world utility to blockchain-powered financial services. Analysts believe this transition could further solidify Celo’s role as a leader in mobile-friendly DeFi solutions.
As Celo enters this new phase, the focus will be on ensuring a smooth transition for existing dApps and users while expanding its impact in the global blockchain space. The successful migration underscores a growing trend among Layer 1 networks seeking to enhance efficiency and reduce costs by leveraging Ethereum’s infrastructure.
With Ethereum Layer 2 scaling solutions gaining momentum, Celo’s move positions it at the forefront of a rapidly evolving industry, signaling a future where seamless, low-cost transactions become the standard for decentralized applications worldwide.
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