Coinbase supporting Celo’s transition to Ethereum Layer-2

Coinbase has announced support for Celo’s transition from a standalone Layer-1 blockchain to the Ethereum Layer-2 network. The process is scheduled to begin on March 25, 2025, with Coinbase temporarily suspending deposits and withdrawals of Celo’s native token, CGLD, during the upgrade.

Goals of the Migration

The migration aims to leverage Ethereum’s robust security and large ecosystem, while maintaining Celo’s signature features such as low transaction fees and fast processing times. This strategic shift is expected to enhance scalability, reduce costs, and improve interoperability with Ethereum-based applications.

Migration and User Impact
Coinbase has assured users that their CGLD tokens will be automatically converted during the migration, requiring no action from them. However, the exchange recommends not depositing CGLD during the migration period to avoid processing delays. Email notifications will be sent to notify users when services are disabled and when they are back.

Technical details of the upgrade
The migration includes significant technical changes, such as faster block confirmations and the introduction of a native bridge between Celo and Ethereum, improving the security and efficiency of asset transfers. Despite these changes, the token for Celo's Layer-2 network on Coinbase will remain CGLD.

Impact on the Ethereum ecosystem
Celo's transition to Layer-2 not only benefits the platform itself, but also contributes to the overall growth of the Ethereum ecosystem. This demonstrates Celo's commitment to innovation, scalability, and interoperability – all important factors for the future of decentralized technologies.

Currently, the price of Ethereum (ETH) is $2,013.53, down $60.84 (-2.93%) from the previous closing price.