Following the news about XRP Coin, the cryptocurrency markets have now returned to a sideways trend. However, there are exceptions. One of the popular altcoins traded on the Binance exchange has turned upward with the news that came early in the morning. So, what was behind the event that triggered the price increase? What can investors expect in the future?
CELO Update
cLabs suggests migrating Celo from an independent EVM-compatible L1 to Ethereum L2, adopting the OP Stack architecturally, operating it by Ethereum node operators, and securing it with restructured ETH. Currently, cLabs plans to make a governance call for the transition from Celo to L2 on July 21st.
Following this news, the CELO price rose to $0.526. Considering that the price has reached this level on July 14th, it may rise further as the expectation of increased demand for the project approaches the July 21st date.
CELO Coin
Celo Whitepaper 2, published in 2018, focused on addressing the major obstacles to the adoption of global cryptocurrency as a payment tool. With the technical review shaped around the mission of global prosperity, Ethereum’s equally mission-focused vision appealed to Celo co-founders and the initial team. However, from a technical perspective, it was proven that there was a barrier to building directly on Ethereum due to scalability and consensus mechanisms, leading to the final launch of the Celo mainnet. It was launched in 2020 as the first carbon-negative, EVM-compatible proof-of-stake (PoS).
Nevertheless, the Celo community continued to monitor the developments around Ethereum’s rollup-centric roadmap 2 with special attention to Ethereum’s progress. Therefore, the Celo community is preparing for the next stage ETH2 milestones (e.g., light clients, single-slot finality, and usability) and discussing how Ethereum’s advancements could lead to improvement on the Celo mainnet.
But why now? The forum announcement states:
“Celo’s technology is inherited from Ethereum and owes a lot to Ethereum. Our communities, like our vision of building a more inclusive financial system on decentralized technology, align. As L2 research has progressed, it has become a suitable path to bring Celo closer to Ethereum. Two significant developments make us believe that now is the time;
Off-chain data usability solutions like EigenDA enable Celo to still contribute to Ethereum (and Ethereum validators who prefer EigenLayer) without requiring significant increases in transaction fees.
OP Stack has created an incredible, open reference architecture for optimistic rollups and chains.
cLabs believes that these advancements in the Ethereum-based L2 stack have the necessary components to add significant value to the mission of transitioning to Celo L2.”
