TL;DR
- Binance has fully committed to supporting Celo’s network upgrade, which will take place on March 26, 2025, pausing deposits and withdrawals temporarily.
- Celo is abandoning its Layer 1 structure to integrate as a Layer 2 scaling solution on Ethereum, aiming for better efficiency and lower costs.
- While Binance supports the transition, Coinbase has stirred controversy by refusing to assist with the migration.
Binance, the world’s largest cryptocurrency exchange by trading volume, has confirmed it will support the anticipated Celo network upgrade and hard fork. Starting on March 26, 2025, at 09:00 (Beijing time), deposits and withdrawals of CELO tokens on the platform will be temporarily suspended as part of the transition process.
This move is a game-changer: Celo will cease to operate as a standalone Layer 1 blockchain and instead evolve into a Layer 2 solution on Ethereum. This means that, rather than functioning independently, it will leverage Ethereum’s security and infrastructure to offer higher scalability and lower transaction fees. The migration may also simplify the integration of existing dApps and foster the creation of new applications focused on mobile payments and microfinance, one of Celo’s original core missions. Additionally, this could unlock access to Ethereum’s liquidity and user base, which might drive long-term adoption and boost overall network value.
A Strategic Move Toward a Stronger Ecosystem
Many crypto experts are applauding Celo’s pivot. With this upgrade, the network is expected to offer a better experience for developers by integrating Ethereum-based tools and expanding its footprint in decentralized finance (DeFi). According to CoinMarketCap, CELO is currently priced at $0.3861, with a market capitalization of $218.3 million. In the past 24 hours, trading volume exceeded $25 million, and the token saw a 2.22% price increase.
However, Coinbase’s decision not to support this shift has sparked criticism. For many in the community, it’s seen as a missed opportunity for the U.S.-based exchange, especially as Ethereum continues to cement itself as the backbone of blockchain development.
Optimism from the Crypto Community
Marek Olszewski, CEO of cLabs, explained that the Celo Layer 1 client will stop syncing and make way for the new Layer 2 client. This shift is not only about scaling but also about attracting more developers, creating new use cases, and positioning Celo as a competitive alternative within the Ethereum ecosystem.
For pro-crypto investors, this transition is more than just technical, it marks a new chapter for Celo, where efficiency, compatibility, and expansion will be the keys to long-term growth.
