title: Celo (CELO) Transitions to Layer 2 Network, Expands Its Utility to Numerous dApps

Previously launched as a layer 1 blockchain network, Celo has now joined the Ethereum ecosystem with it transiting into a layer 2 network.

Celo, previously known as a layer 1 blockchain network, has officially joined the Ethereum ecosystem by transitioning into a layer 2 network. The transition, which was proposed in July 2023, will see Celo expanding its utility to numerous dApps in the Ethereum ecosystem, valued at over $455 billion with hundreds of dApps and projects.

Celo’s engineers at cLabs have been working diligently for 20 months to prepare this migration, aiming to minimize network downtime. L1 validators also played a crucial role in upgrading their clients for a smooth transition.

After the announcement, CELO token has shown a decent reaction, surging over 12% in the past 7 days. CELO price is currently trading near $0.4 – as per Coinmarketcap data.

The development of Celo’s layer 2 infrastructure is based on Optimism’s OP stack and EigenDA. This innovative approach will enable Celo to achieve nearly 1 second block time while allowing users to pay gas fees using tokens like USDT and USDC.

“This migration was made possible by the cLabs engineers who worked tirelessly over 20+ months to preserve the state of the network while driving Celo into its winning era. L1 validators preparing & upgrading their clients was essential to minimizing network downtime.”

This move by Celo brings together the best of both worlds – Celo’s focus on real-world adoption and Ethereum’s renowned security, community, and network effects. It's a significant step in expanding the Web3 ecosystem and providing more options for developers and users.