Celo Blockchain Plans Transition to Ethereum Layer-2 Network as Token Soars Almost 10%

CLabs, the developer behind the Celo blockchain, has announced its plans to transition to the Ethereum ecosystem. After months of research and discussions with both Celo and Ethereum community members, the team proposed the move in a recent Twitter announcement. The final decision, however, will be made through a community vote on Saturday, July 22.

The proposed transition entails the movement of the Celo blockchain from an independent layer-1 blockchain to an Ethereum layer-2 solution. Experts believe that this migration could bring about significant gains for the Celo blockchain. Technical analysis indicates that the transition will result in improved security, greater liquidity, and enhanced compatibility with Ethereum and its tooling and libraries.

To facilitate the migration, Celo plans to rely on Optimism’s OP Stack initially. This move eliminates the need for monitoring compatibility, making it easier for Celo developers to utilize the full range of Ethereum tools and libraries. Furthermore, Celo already works well with the Ethereum Virtual Machine (EVM), making it easy for Ethereum developers to migrate their existing apps or create new ones using familiar tools.

The native token of the Celo blockchain, CELO, has experienced positive momentum since the announcement. Such token surges are not uncommon when major upgrades are planned. CELO has surged nearly 9.96% in the past week, reaching a value of $0.545. Over the last month, the token has seen a gain of more than 35%, according to CoinMarketCap data.

Moving forward, it will be interesting to see the outcome of the community vote on July 22 and how the transition to the Ethereum layer-2 network will unfold. The potential benefits for the Celo blockchain, including improved security and greater compatibility, make it an exciting development for the crypto community.