On March 26, 2025, Binance will pause deposits and withdrawals of Celo due to network upgrade and transition to Ethereum Layer 2.
Binance's Support for Celo
Binance has officially confirmed it will support the upcoming Celo network upgrade and hard fork, marking a crucial phase for the blockchain platform. This decision underscores Binance's role in backing significant blockchain advancements. Deposits and withdrawals of Celo tokens on Binance will be temporarily suspended starting from 9:00 a.m. Beijing time. The upgrade involves Celo transitioning from a Layer 1 system to an Ethereum Layer 2 solution, which is expected to enhance scalability, reduce transaction fees, and improve operational efficiency.
Community Reactions to Celo's Transition
Community reactions to the transition have been mixed. Marek Olszewski, CEO of cLabs, noted, 'At this time, the Celo Layer 1 client will stop syncing and the Layer 2 client will take over.' However, Coinbase's decision not to support the migration has stirred debate and criticism within the crypto sector.
Celo's Market Movement and Expert Insights
According to CoinMarketCap data, Celo's price stands at $0.3861, with a market cap of approximately $218.30 million and a fully diluted market cap nearing $386.18 million. The trading volume in the last 24 hours was over $25.29 million, showing a surge of 155.98%. Celo's price has seen a 2.22% rise in the past 24 hours. It's important to note the price fluctuations over different periods, with a 12.59% increase over the past week but a decline of 10.63% over 30 days. Experts believe that Celo's switch to Ethereum Layer 2 could offer economic advantages by tapping into Ethereum's robust ecosystem, potentially providing long-term financial benefits such as broader developer engagement and enhanced decentralized finance (DeFi) opportunities.
Celo's transition to Ethereum Layer 2 will significantly impact its operational efficiency and potential integration into Ethereum's ecosystem. While Binance's decision to support this move is welcomed, Coinbase's lack of support raises concerns.
