Celo has successfully launched the Dango Layer-2 testnet, built on the OP Stack infrastructure from Optimism. This marks a significant step for Celo, the first mobile-focused Layer-1 blockchain, as it deepens its integration into the Ethereum ecosystem.

Strategic Development

The plan to develop a Layer-2 solution was discussed and voted on by the Celo community in July 2023. After eight months of evaluation, Celo decided to build the Layer-2 using the Optimism Stack, similar to other projects like Base, Zora, Mode, and others.

By joining Optimism’s Superchain ecosystem, Dango not only retains the benefits of Celo’s Layer-1 capabilities but also inherits a scalable and highly interoperable blockchain framework.

User Benefits and Network Enhancements

Users can continue to use stablecoins USDT and USDC for gas fees on the new network, and asset bridging between Ethereum and Celo will become easier. According to the announcement, transactions on Celo will also be faster, with a 50% increase in throughput and a reduction in block processing time from 5 seconds to just 2 seconds.

“For most EVM-compatible chains, it’s becoming increasingly difficult to maintain a unique position as Ethereum makes significant strides in expanding and improving its network,” Celo cLabs CTO Marek Olszewski shared with The Block last year.

Future Outlook

The new testnet lays the groundwork for Celo to launch the Dango mainnet, expected in early winter 2024. Both the Celo Foundation and cLabs are committed to driving innovation and strengthening the blockchain ecosystem, ensuring a smooth transition and robust growth for developers and users.

Market Reaction

Despite the positive news, the price of the CELO token has not responded favorably. In the past 24 hours, the token has dropped more than 6%, trading around $0.47 per token, mirroring the overall market trend.

1-hour chart of the CELO/USDT pair on Binance at 09:40 AM on July 8, 2024

Source: Coin68