The Celo ecosystem has gone through transformative changes, and with these changes came renewed opportunities. Celo places its focus on developing countries, and currently its DeFi ecosystem is thriving as the total value locked approaches the $80 million mark.
Celo transitioned from a Layer-1 blockchain to an Ethereum Layer-2 network in March 2025. To achieve this, the developers tapped into Optimism’s OP Stack for scalability. The move aligned Celo with Ethereum’s ecosystem, which brings more efficiency for both developers and users alike.
With Celo being part of the OP Superchain ecosystem, it benefits from low transaction costs, high speed transactions and enhanced security. In the past 30 days, Celo has seen over $608 million flow into its dapp ecosystem. That’s a 30% increase from the period before that.
Moreover, the transition from an independent blockchain to becoming an L2 network built on top of Ethereum didn’t cripple Celo’s mobile-first focus. Celo is still all about global financial inclusion, and the pivot boosts the network’s growth potential.
DeFi milestones on Celo’s network
Celo’s DeFi ecosystem is thriving as the total value locked in the ecosystem smart contracts now sits at $79.3 million, an increase of 4.9% over the past 30 days. While Uniswap and Aave are among the DeFi hubs with a presence on Celo, it’s the native Mento protocol that stands out.
Recently Mento upgraded its services by tapping into Chainlink oracles. This allows the DeFi platform to present accurate token prices. Uniswap V3 may have had $338 million in volume flowing through the platform, but Mento managed to attract $263 million.
One of the focus points in the Celo ecosystem is the use of stablecoins. In various countries in Africa the chain is used for day-to-day payments, and the MiniPay app is key to that. Within this app there’s a feature to swap USDT and USDC, and provides an easy way for users to access stablecoins. GoodDollar, an educational DeFi dapp, is among the most popular dapps on Celo.
Adoption in Africa is being pushed by Celo Africa DAO, and they reported strong results in Q1 2025. Through cKash App they brought new stablecoins to the ecosystem, including cCHF, cNGN and cJPY. Yes, those are stablecoins for the Swiss franc, Nigerian naira and Japanese yen.
Beyond stablecoins into RWA
Despite Celo’s focus on stablecoins and financial inclusion, the chain also taps into other initiatives. Together with Mexico’s CMIC CDMX, they launched a program to tokenize construction materials. The system needs to track construction waste as real-world assets (RWA). In May 2025, trading volume rose 12% to $18.5 million.
It’s this type of innovation that sets Celo apart from other ecosystems. This also shows in the launch of Celo’s Cultural Manifesto in May 2025. This document defines shared values for governance, helping the community shape the protocol’s future.
Not only does this foster trust and engagement, but data shows that more people are involved in governance. This resulted in the launch of Self Protocol, a solution for identity authentication which uses zero-knowledge proofs. Through hackathons and grants the Celo ecosystem is pushing for more developer activity and innovation.
Closing Words
Celo’s transformation into an L2 network wasn’t a final attempt for relevancy, but a smart move to support its mission for financial inclusion. The network thrives in the DeFi sector, and innovation with real-world assets. Moreover, Celo empowers communities worldwide with easy access to financial markets.
