Celo is emerging as a serious competitor to Tron in the field of stablecoins, with an increase in daily active addresses. Additionally, the support of Vitalik Buterin has further boosted the rally of the CELO token.
Let’s see all the details below.
The token CELO gains 20% after praise from Vitalik Buterin, a threat to the stablecoin Tron?
Celo, a blockchain mobile-first based on Ethereum and specialized in decentralized applications and smart contracts, is rapidly gaining ground compared to Tron in the competition for the number of active addresses using stablecoin.
On Wednesday, the token CELO recorded a 20% increase, thanks to the public praise from Vitalik Buterin, co-founder of Ethereum, for the progress made by the ecosystem.
According to the data collected by Artemis, the seven-day moving average of daily active addresses on Celo using stablecoins has risen to about 700,000. Thus approaching the number of Tron, historically the leading blockchain in this field.
This significant increase occurred after the implementation of Tether’s stablecoin USDT on Celo, which took place last March. Since then, over 200 million dollars in USDT have been issued on the Celo network, greatly increasing its adoption.
The adoption of USDT on Celo has had a significant impact, but it was not the only factor that pushed the network towards greater adoption.
Another key element was the collaboration between Celo and Opera, initiated a year ago, which led to the launch of MiniPay. That is, a mobile-first wallet for non-custodial stablecoin, integrated into the Celo blockchain.
MiniPay allows users to transfer funds instantly using only the phone number. This simplifies access to digital financial services in regions where traditional banking infrastructure is limited.
According to a representative of Celo, MiniPay has surpassed one million users in less than five months since its launch, with strong penetration in markets such as Nigeria, Ghana, and Kenya.
This result demonstrates the effectiveness of Celo’s strategy of focusing on mobile-first applications. These aim to make decentralized financial services more accessible to people in emerging economies.
The Influence of Vitalik Buterin, the competition with Tron and the current limits
As mentioned, Vitalik Buterin’s intervention, which took place on X (formerly Twitter), has further galvanized investors’ interest in Celo.
Buterin has expressed his appreciation for the progress of the network. In particular, highlighting how the expansion of global access to payments and financial services is one of the main objectives of the Ethereum ecosystem.
“It’s fantastic to see Celo gaining traction,” commented Buterin, reinforcing the reputation of Celo as a rapidly growing project in the world of cryptocurrencies.
These words had an immediate effect on the value of the CELO token, which rose by 20% in just 24 hours, bringing it to a price of about 63 cents, according to data provided by CoinDesk.
The increase highlighted the interest of investors in the ecosystem and emphasized the potential of Celo to compete with the already established giants of the sector.
Despite the impressive progress, Celo remains behind Tron in terms of the overall value of stablecoin transactions conducted on its network.
According to Artemis data, Celo recorded just over 1 billion dollars in stablecoin transfer volume. A significantly lower value compared to the 335.7 billion dollars transferred on Tron in the same period.
Leading the sector remains Ethereum, with a total volume of over 470.4 billion dollars.
This gap highlights a significant challenge for Celo. While it is gaining ground in the number of daily active users, it still needs to improve the overall transaction volume to truly compete with Tron and Ethereum on all fronts.
However, the recent momentum could be the catalyst for further network expansion, especially if the adoption of MiniPay and USDT continues to grow.
A look to the future
In any case, Celo positions itself as one of the most innovative blockchain ecosystems with a clear vision. That is, to offer decentralized financial services to a global audience, with particular attention to emerging markets.
The combination of mobile-first technologies, stablecoin, and smart contract could allow Celo to bridge the gap with Tron and Ethereum in the near future.
The growth of daily active addresses and the support of influential figures like Vitalik Buterin indicate that Celo is well-positioned to become a key player in the world of stablecoins and decentralized payments.
However, significant challenges remain, particularly regarding the increase in transaction volume and competition with well-established networks like Tron.
With the sector’s attention increasingly focused on solutions that can improve access to financial services globally, the future of Celo looks promising.
It remains to be seen if the network will be able to maintain its momentum and overcome the main obstacles that stand in the way of its full affirmation.