Coinbase has announced its support for Celo’s migration from a standalone Layer-1 blockchain to an Ethereum Layer-2 network.
This transition is a pivotal moment for Celo, set to commence on March 25. During this period, Coinbase will temporarily suspend deposits and withdrawals of Celo’s native token, CGLD, to facilitate a smooth upgrade process.
Celo’s decision to migrate to Ethereum’s Layer-2 is strategic, aiming to leverage the security and vast ecosystem of Ethereum while maintaining its core attributes, including low transaction fees and quick settlement times. This migration not only enhances Celo’s technological capabilities but also positions the platform more favorably within the decentralized finance (DeFi) landscape.
Celo is transitioning from a Layer 1 blockchain to an Ethereum Layer 2. Coinbase will conduct this upgrade today beginning at 8pm PDT. During the upgrade, send/receive for CGLD will be temporarily disabled.
Here is what to expect
— Coinbase Assets
(@CoinbaseAssets) March 25, 2025
Coinbase has provided assurances to its users that their CGLD tokens will automatically convert during the migration process, so no manual intervention will be necessary on the users’ end. However, the exchange has recommended that users refrain from depositing CGLD during the migration window to avoid potential processing delays.
To keep users informed throughout the process, Coinbase will send email notifications detailing when CGLD services are suspended and when they will resume, ensuring that everyone is aware of the changes and timelines involved.
Migration Process
The migration encompasses substantial technical enhancements, designed to optimize performance. Notably, there will be faster block confirmations, which will improve transaction speed and efficiency. Moreover, the introduction of native bridging between Celo and Ethereum signifies a crucial advancement, enhancing security and streamlining asset transfers across platforms.
Despite these significant changes, it is important for users to note that the token ticker for Celo on the Coinbase platform will remain CGLD, ensuring continuity for those already invested in Celo’s ecosystem.
This migration is expected to not only broaden the appeal of Celo as a versatile blockchain solution but also foster greater interoperability with Ethereum-based applications. By moving to Layer-2, Celo is taking a definitive step towards unlocking enhanced scalability while controlling transaction costs, thereby setting the stage for future growth and innovation.
The excitement surrounding this migration is palpable within the crypto community, as stakeholders anticipate the benefits of a more integrated and scalable infrastructure. Celo’s commitment to low fees and rapid transaction times will remain unchanged, a critical consideration in today’s fast-paced digital economy.
