The growing interest in the use of stablecoins The recent report from analytics platform Celo (CELO), a layer-one (L1) network launched in 2020 that is in the process of transitioning to an Ethereum (ETH) layer-two (L2) network, demonstrated on-chain Artemis.
Regarding the report provided by Artemis on Celo L1, it was highlighted that this network surpassed Tron (TRX) in terms of the number of daily active addresses linked to the use of stablecoinsThis information can be seen in the following graph.
With a red line, the Tron network, a primary player in operations with stablecoins and, in yellow, Celo, who managed to position himself slightly above the network founded by Justin Sun.
At the same time, it left other networks such as Solana (SOL), The Open Network (TON) and BNB Chain (the Binance network) far behind in this statistic.
Continuing with the Artemis data, it also showed that the transaction size of stablecoins In heat it was very variedthis as if to explain that these operations were not movements spam to encourage inauthentic use of the network.
The following graph expresses the number of daily transactions with stablecoins on the Celo networkbroken down by different transfer sizes. The vertical axis indicates the number of transactions (Tx Count) per day, while the horizontal axis spans time, from week 53 of 2023 (2023 W53) to week 36 of 2024 (2024 W36).
Over time, transaction volume has been increasing, with a significant peak around week 32 of 2024, where 1.3 million daily transactions were exceeded.
With diversified participation across transaction sizes, this could suggest increasing adoption in the use of stablecoins in a variety of situations, from micro transactions to larger volume operations.
Ultimately, the data revealed that the stablecoin supply on the Celo network grew significantly in 2024.
However, it would be worth mentioning here that the statistics collected by Artemis imply an insufficient measurement to determine a supremacy of Celo over Tron. On the other hand, it could be pointed out that Tron maintains 98% dominance As for the amount of transactions in USDT, the stablecoin most used in the market, issued by the company Tether, compared to other networks, according to DeFiLlama.
Currently Celo maintains a testnet (test network) of L2 on Ethereum, called Dangousing the Ethereum Virtual Machine (EVM), while its second L2 test network, Alfajores, will be launched on September 26, 2024.
Also, from Celo They report that the mainnet (mainnet) will be available in early November 2024, although they did not specify an exact date for that month.
What is the reason for the increase in use in stablecoins in heat?
Initially it could be highlighted that it is a network that allows approximately 200 transactions per second (TPS) and that has very low commissionswith an average of 0.0005 CELO per transaction, which at the time of writing is equivalent to $0.00034.
Furthermore, this is a (still) L1 network that offers EVM compatibilitymaking it easier to migrate decentralized applications (dApps) from Ethereum.
Another fact that boosted the use of Celo during 2024 was The arrival of the most used stablecoinssuch as USDC and USDT, in February and March this year, respectively.
Finally, Artemis also pointed out that the increase in Celo was driven by the increase in the adoption of dApps and the strong demand for the use of digital assets regions like Africa.
Vitalik Buterin praised the growth of the Celo network
In response to the data provided by Artemis, Ethereum co-founder Vitalik Buterin today praised the growth of Celo and highlighted that one of the central axes of Ethereum is the use of this network in everyday payments.
“It’s amazing to see this. Improving global access to basic payments and finance has always been a key way Ethereum can do good for the world, and it’s great to see Celo gaining traction.”
Vitalik Buterin, co-founder of Ethereum.
This had an immediate impact on the price of token native of the network, CELO. Following Vitalik’s remarks, the price of this cryptocurrency shot up by 20% and reached $0.66, an area it had not touched since early June 2024, according to CoinMarketCap.
While it could be interpreted that now Buterin would be “flattering” a network that is in the process of becoming an L2 and joining the ecosystem of the network co-founded by him, growth shown by Ethereum’s second layer (L2) networks during 2024 has been remarkable. Some of them stand out: Base, Arbitrum, Mantle and others.
CriptoNoticias recently reported on this and reported that the scalability and performance recorded in these networks in the period of the last 6 to 12 months, ranged between 47% and 528%.
