Celo has finalized its migration from a standalone Layer 1 blockchain to an Ethereum Layer 2 network, leveraging the OP Stack for scalability, lower fees, and native Ethereum compatibility.
Background
- After nearly two years of planning and development, Celo’s transition to an Ethereum Layer 2 is now complete.
- Initially launched in April 2020 as a mobile-first, Proof-of-Stake Layer 1 blockchain, Celo aimed to drive global adoption of decentralized finance through mobile accessibility and low-cost transactions.
- However, as the broader Ethereum ecosystem matured, Celo's core development team at cLabs proposed a migration in July 2023 to benefit from Ethereum’s security and developer ecosystem.
- The transition process began earlier today when Celo's Layer 1 block production halted, initiating the formal migration to Layer 2.
- Celo now operates as an Optimism-powered optimistic rollup built using the OP Stack and integrated with EigenLayer’s data availability layer (EigenDA).
Why should you pay attention?
- Celo's shift represents one of the most significant L1-to-L2 migrations in the Ethereum ecosystem to date.
- The move enables sub-second block times, ultra-low transaction costs, native Ethereum bridging, and support for stablecoin gas fees — positioning Celo as a notable Layer 2 solution for mobile-first DeFi and payments.
- The migration also paves the way for a new governance structure, where former validators will transition into decentralized sequencers, and existing apps can maintain continuity while benefiting from Ethereum interoperability.
Who said what?
- In an official statement shared on X, the Celo team declared:
“Ethereum, we're home. Following a successful ‘hard hard fork’ led by core contributors at Celo Labs & L1 validators, Celo is officially an Ethereum Layer 2.”
- They highlighted features such as:
One-second block times
Sub-cent transaction fees
Native bridging
Fee abstraction using stablecoins like USDT and USDC
“Ultragreen money” and other eco-focused initiatives
- The post also acknowledged over 100 partners, including Uniswap, Fireblocks, Aave, and Yellowcard, for their support in migrating apps and infrastructure to the new Layer 2.
Zooming out
- Celo’s integration with Ethereum strengthens Ethereum’s broader rollup-centric roadmap by aligning a mission-driven blockchain with its scalable, modular vision.
- The successful migration reflects the increasing modularization of Layer 2s and signals a growing trend of app-specific chains embracing Ethereum-native tooling through optimistic rollup frameworks like OP Stack.
- The transition is also a proof point for projects seeking enhanced network effects, liquidity access, and reduced operational costs without sacrificing mission or state continuity.
- Celo Labs plans to continue supporting developers during onboarding, refine fraud proofs, and advance toward Stage 1 decentralization milestones.
- With over 11 million total active addresses and more than 720 million transactions to date, Celo’s new role as an Ethereum Layer 2 could redefine how decentralized applications engage emerging markets and mobile-native users on-chain.
