Celo is officially transitioning from a standalone Layer-1 blockchain to an Ethereum Layer-2 network, with support from Coinbase. The shift, beginning March 25, aims to unlock better scalability, cost-efficiency, and interoperability across the Ethereum ecosystem.

Celo transitions to Ethereum Layer-2

Strategic move enables deeper integration with Ethereum apps

Celo’s migration to a Layer-2 solution marks a major evolution in its infrastructure. By aligning with Ethereum, the network will benefit from Ethereum’s robust security and ecosystem, while retaining its core features like low fees and fast settlement times. This change positions Celo to compete more effectively in the rapidly growing Layer-2 space.

Coinbase provides seamless support

Automatic conversion for users and minimal disruption

Coinbase has confirmed that it will fully support Celo’s transition. All CGLD tokens held on the platform will be automatically updated during the migration, requiring no user action. However, deposits and withdrawals of CGLD will be temporarily paused during the upgrade process to ensure a smooth technical rollout.

Technical upgrades improve performance

https://x.com/CoinbaseAssets/status/1904579046148624517

Native bridging and faster confirmations enhance functionality

The migration introduces major improvements including faster block confirmations and a native bridge between Ethereum and Celo. These upgrades enhance asset transfer efficiency and security, enabling seamless cross-chain interoperability. Despite the transition, the token ticker CGLD will remain unchanged on Coinbase.

Minimal impact on end users

Clear communication and guidance from Coinbase

Coinbase will notify users via email about the exact timing of service suspensions and resumptions. By handling the token conversion process internally, Coinbase ensures that users retain uninterrupted access to their CGLD holdings once the migration is complete.

What this means for the Ethereum Layer-2 ecosystem

A signal of growth and consolidation around Ethereum

Celo’s migration underscores the growing appeal of Ethereum Layer-2 solutions. As more projects adopt Ethereum as a base layer, the ecosystem becomes more interconnected, efficient, and scalable. This trend reflects a broader industry movement toward modular blockchain design and greater Layer-2 adoption.