After nearly two years of planning and community deliberation, Celo has officially completed its transition from a Layer 1 blockchain to an Ethereum Layer 2 network. The move, which marks a strategic shift for the mobile-first blockchain, aims to unlock faster transactions, reduce costs, and improve composability within the Ethereum ecosystem.
The transition kicked off in July 2023, culminating in a key community vote a year later that determined Optimism’s OP Stack would be the foundation of Celo’s new Layer 2 architecture. The decision followed a competitive bidding process between multiple Layer 2 scaling solutions, with Optimism emerging as the top choice for its technical flexibility and strong developer support.
“Migrating an existing chain to an L2 is no small feat — we completely changed the way it operates, while preserving its state and all blocks, a joke internally referred to as a hard, hard fork.” the blog post stated.
“Whenever people ask us, we always recommend the OP Stack,” said Marek Olszewski, CEO at cLabs, the core developer team behind Celo.
“The team at Optimism has been incredibly helpful and supportive throughout the entire process.”
Now powered by Optimism’s modular framework, Celo users can expect drastically lower gas fees and near-instant settlement times while enjoying the security and network effects of Ethereum’s mainnet. This upgrade also positions Celo to attract a broader array of developers looking to build scalable applications in DeFi, real-world assets, and regenerative finance.
With the Layer 2 migration complete, Celo enters a new phase focused on ecosystem growth, cross-chain interoperability, and bringing its original mission—empowering mobile users with accessible financial tools into a more scalable future.
Celo’s L2 Shift Sets the Stage for Other Layer-1 Chains Eyeing Ethereum Integration
Celo’s move to become an Ethereum Layer-2 network is not just a milestone for the project itself—it may also serve as a playbook for other Layer-1 blockchains considering a similar path. According to Celo Foundation president Rene Reinsberg, the network’s migration process is now being closely observed by fellow blockchain founders across the ecosystem.
“This wasn’t just about launching a new chain. It was about maintaining the history, keeping the community intact, and evolving the network without fragmenting it. That’s what makes this transition a powerful case study.” Reinsberg said.
The migration, which relied on Optimism’s OP Stack, was technically complex but ultimately successful, setting a precedent for how other EVM-compatible chains could upgrade their scalability and composability by building on Ethereum instead of competing with it. Reinsberg noted increased outreach from leaders at other Layer-1 projects, curious about the inner workings of the shift and its long-term implications.
Despite some broader concerns within the Ethereum community about the fragmented user experience across various Layer-2 networks—and a slower ETH price recovery compared to faster-growing chains like Solana; Reinsberg believes Ethereum is still the logical ecosystem for sustainable, long-term innovation.
According to the team, most end users won’t need to make any changes to continue using key features like SocialConnect, which links wallet addresses to users’ phone numbers or X handles to simplify payments.
The team emphasized that Celo’s track record as a battle-tested blockchain remains intact. To date, the network has hosted over 1,000 decentralized applications, supported 14+ stablecoins (including native USDT and USDC), facilitated more than 720 million transactions, and connected with over 11 million active wallet addresses.
Quick Facts:
- Celo has officially completed its migration from a Layer 1 chain to an Ethereum Layer 2 network powered by Optimism’s OP Stack.
- The transition, which began in July 2023, followed a community vote and competitive bidding process among Layer 2 providers.
- The move is expected to drastically reduce gas fees and improve transaction speeds while maintaining compatibility with Ethereum.
- Celo’s Layer 2 shift sets the stage for broader ecosystem growth in DeFi, real-world assets, and mobile-first financial tools.
