Celo Transitions to Ethereum Layer 2 Protocol

Celo is adopting Ethereum Layer 2 technology, specifically through the Optimism rollup implementation, to enhance scalability and reduce transaction costs.

This shift is expected to improve transaction speeds significantly, benefiting the Celo network’s user experience and overall market efficiency.

Celo Adopts Optimism Rollup for Improved Scalability

Celo’s adoption of the Ethereum Layer 2 solution aligns with its ongoing mission to foster financial inclusivity. The move integrates the Optimism rollup, enhancing transaction efficiency on its platform.

The transition involves collaboration with Ethereum’s robust ecosystem, indicating a focus on improving interoperability and scalability to better support its applications and users.

Reduction in Transaction Fees Boosts User Adoption

The integration is anticipated to reduce transaction fees and bolster user adoption. The upgrade is seen by many in the industry as a positive progression for the network, driving technological advancements.

As reported by CoinMarketCap on March 26, 2025, Ethereum’s price stood at $2,013.56 with a market cap of $242.92 billion. Ethereum’s 24-hour trading volume reached over $11.6 billion, reflecting a -1.88% change. The platform’s circulating supply is approximately 120.64 million ETH tokens.

Industry Trends Mirror Celo’s Layer 2 Integration

Similar L2 integrations, like Arbitrum and Polygon, have previously boosted network efficiency and lower fees. This mirrors trends observed in the industry where scalability improvements lead to increased adoption.

Experts anticipate that, based on historical trends, Celo’s network performance may experience increased activity and user engagement, which could stabilize the ecosystem’s economic viability.

Rene Reinsberg, Co-Founder & President of Celo Foundation, stated, “Since launch, Celo has maintained close alignment with Ethereum, and we’ve always seen ourselves as a cultural extension of the community with a rich Regen culture and focus on mobile DeFi applications. Migrating to a Layer 2 marks an exciting return home for Celo, combining the best of the networks’ advantages to scale Web3 with global reach and continued impact.”
– Celo Forum