Celo Integrates USDC as Gas Fee

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Circle, the issuer of stablecoins such as USDC and EURC, has announced plans to extend the functionality of USDC to Celo, a Layer-1 blockchain that has undergone a proposal to become an Ethereum Layer-2 scaling solution.

The integration of USDC into the network comes as the Celo ecosystem aims to become a central blockchain for real-world asset tokenization (RWA), facilitating cross-border payments, enabling local currency conversions, and promoting peer-to-peer transactions in developing regions.

In addition to token issuance, an upcoming governance vote organized by cLabs—the Celo blockchain development team—will decide whether to officially adopt USDC as the primary gas fee on the network, replacing CELO.

Shamus Noonan, Director of Business Development at Circle, shared thoughts on the integration:

Circle is proud to join the Celo ecosystem, a blockchain renowned for providing fast and low-cost payment services worldwide. This partnership will help expand the reach of USDC and leverage Celo’s large user base in areas with the highest blockchain adoption rates.

TVL CELO

Celo, launched in 2020, employs the Proof-of-Stake consensus mechanism to minimize environmental impact. During the market growth phase in 2021, the Total Value Locked (TVL) on the Celo network peaked at over $1 billion. However, after two years, this figure currently stands at $120 million.

TVL Fluctuations on Celo, DefiLlama Snapshot at 03:10 AM on January 31, 2024

Chart CELO

The price of CELO has experienced positive fluctuations since the partnership agreement with Circle was announced, but it has yet to return to the high level of $0.9 USD observed at the beginning of January 2024.

The 4-hour chart for the CELO/USDT pair on Tradingview at 03:19 AM on January 31, 2024.