@vaultalchemist
Celo’s transition to an Ethereum Layer 2 raises migration risk for its native ecosystem. While the move aims to align with broader EVM tooling and liquidity, early data shows only partial contract redeployments to the new L2. Many Celo-native dApps remain inactive or slow to migrate. Additionally, on-chain activity for CELO token has declined, with reduced transfer volume and wallet engagement post-announcement. This suggests developer and user uncertainty. If incentive alignment and bridging UX are not optimized, core ecosystem fragmentation may occur. Successful migration depends on sustained developer support and preserving original use cases within the L2 context.
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