Ethereum co-founder Vitalik Buterin has recently commended Celo, a blockchain platform focused on enhancing global financial access, leading to a significant surge in its token price. 

More: Circle's USDC Integration on Celo

On his official X account, he posted a tweet that says:

Following his endorsement, the CELO token rose by over 39.86% in the last 7 days, trading at approximately $0.653 as of September 25, 2024, according to data from TradingView.

Let's breakdown the key points:

  • Ethereum co-founder Vitalik Buterin praised Celo for improving global financial access, leading to a 40% surge in the CELO token price.
  • Celo surpassed TRON in daily active addresses for stablecoin usage, enhancing its visibility in the crypto market.
  • Tether announced the minting of $200 million USDT on Celo, boosting confidence in the platform's growth.
  • Celo's market capitalization increased to approximately $338.9 million, with trading volumes rising over 500% in a single day.
  • Celo is set to launch its Ethereum Layer-2 solution in early November 2024, while Buterin cautioned about potential challenges for some Layer-2 projects.

Buterin's praise came in light of Celo surpassing TRON in daily active addresses for stablecoin usage. During an interview, he stated:

Celo’s efforts to enhance global access to basic payments and financial services are commendable.

He further appreciated how Celo's mission aligns with Ethereum's goals of improving financial services globally. As expected, Buterin’s endorsement was echoed on social media, with many users highlighting the positive implications for the broader crypto ecosystem. 

Consequently, CELO token experienced a price surge up to 40% shortly after the commendation from Buterin. Many crypto analysts have since then come out to explain the reason behind the recent price increase, attributing it to several factors. 

Notably, Tether's announcement to mint $200 million worth of USDT on Celo has spurred interest and confidence in the platform. This move is seen as a pivotal moment for Celo as it prepares to transition to an Ethereum Layer-2 solution.

Celo’s transition to Ethereum Layer-2 is expected to launch in early November 2024, following successful tests of two Layer-2 networks—Dango and Alfajores. According to the CELO team, this transition aims to deepen Celo's integration with the Ethereum ecosystem

Crypto experts seem to believe this development would have a massive impact on the project’s viability in the future. One user confirmed the community’s sentiment about the transition in an  X post. 

Looking towards market performance, CELO is having an impressive run with trading volumes skyrocketing by over 500%, reaching nearly $99 million in a single day. As a result, its market capitalization has surged to approximately $338.9 million. 

hodl-post-image
CELO 1-Month Chart. Source: Coinmarketcap

The bullish trend is further supported by technical indicators showing that Celo is trading above the Ichimoku Cloud, a classic bullish signal in technical analysis.

However, while the momentum is strong, Buterin has cautioned that some Layer-2 projects may face challenges ahead. He noted that success benchmarks should be set for December 2024, urging developers to focus on building robust systems that can withstand market fluctuations.

Vitalik Buterin Discusses The Importance of Solo Staking on Ethereum | HODL FM
Vitalik Buterin highlights solo staking’s key role in Ethereum’s…
hodl-post-imageHODL FM: The Wildest Ride in the Crypto MarketKataryna Habeliia
hodl-post-image

Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.