Vitalik Buterin supports Cello to beat Tron in Stablecoin addresses
Ethereum founder Vitalik Buterin has been closely following developments on the Silo block and has recently advocated for the use of stablecoins on the platform.
Buterin took to X on September 25 to praise Sello, which surpassed Tron in daily active addresses for stablecoins.
“This is amazing to see. Improving global access to basic payments and finance has always been a key way Ethereum can be good for the world, and it's great to see Silo pulling it off,” said the Ethereum founder.
Source: Vitalik Buterin
On September 26, Celo's Alfajores testnet to upgrade to Ethereum L2
In the post, Buterin mentioned that Celo is preparing to migrate from a separate Ethereum Virtual Machine (EVM)-compatible Layer 1 (L1) blockchain to Ethereum Layer 2 (L2).
The transition marks Silo's transition from the underlying blockchain protocol to a third-party protocol that improves network capacity and has integrated functionality with that underlying blockchain.
As part of Celo's L2 shift introduced by core Celo developer cLabs in July 2023, Celo is currently running two L2 testnets, including Dango and Alphajores, which launched in July 2024 and are expected to upgrade to L2 on September 26.
Cello is closely related to the Ethereum ecosystem.
“Celo's evolution from an L1 EVM-compatible chain to an L2 solution is a milestone in our continued engagement with the Ethereum ecosystem,” Celo said in a post about the network's transition to L2.
The transition brings a number of advantages in connecting Xelo and Ethereum.
“Being L2 not only aligns Silo more closely with Ethereum's wider network, it also empowers our community to create and reach with greater confidence.”
On September 23, cLabs described Cello as a “cultural extension” of Ethereum, citing Buterin's post from May 2024, “Layer 2s as Ethereum's Cultural Extensions.”
While Silo's code shares ancestry with Ethereum and maintains full EVM compatibility for smart contracts, Silo differs from Ethereum in several areas, such as blockchain wallets, as it exists on an independent blockchain.
By 2024, major stablecoins such as Tether and USDC will support a unified silo
The Celo blockchain was launched in 2015. 2024 sees a significant increase in adoption by major stablecoin operators.
Circle, the second largest stablecoin operator, USDC (USDC), launched the first USDC tokens on the platform in February 2024. The stablecoin has accumulated $40 million since the offering on Celo, according to official USDC data.
Related: Tether's USDT market share has risen by 20 percent, reaching 75 percent in two years
Tether, the largest stablecoin operator by market cap, officially announced a March 2024 integration of Silo for the Tether (USDT) stablecoin. As of September 25th, there are $209 million in silo-based USDT tokens, according to Tether Transparency.
The amount accounts for 0.18% of Tether's total USDT in circulation.
Cello-based Tether (UDST) in distribution. Source: Tether Transparency
According to blockchain data provider Artemis.xyz, in September 2024, Celo surpassed the Tron blockchain in terms of daily active addresses for stablecoin usage.
Artemis analysts point out that apps like Minipay and Valora have significantly contributed to the growth of stable coin adoption. In the year After launching in 2023, MiniPay alone has amassed 3 million active wallets by July 2024.
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