CELO Has the Lowest USDT Transfer Fees

From Layer 1 to Layer 2 on Ethereum, Celo offers USDT transactions for less than a cent, challenging giants like Tron and positioning itself as a leader in efficiency and regenerative finance.

The CELO blockchain, in its successful transition from Layer 1 to Layer 2 on Ethereum, has achieved a remarkable feat: becoming the network with the cheapest USDT transfer fees on the market. According to data from Token Terminal, transaction fees on Celo are less than $0.000, placing it in the top 10 most affordable blockchains. This achievement is crucial, especially when compared to other networks like Tron, which have seen their costs skyrocket. With its sights set on mass adoption and its commitment to regenerative finance (ReFi), Celo is emerging as a key player for the future of stablecoin transactions.

Celo ranked as the fifth cheapest L2 fee overall, and the first cheapest among all chains minting USDT/Terminal Token.

Celo: Efficiency at the Service of USDT

Celo's narrative has taken a fascinating turn. What was once an independent Layer 1 blockchain has now been restructured as a Layer 2 (L2) blockchain on Ethereum. This reconfiguration not only improves its scalability and security by leveraging Ethereum's infrastructure, but also catapulted it to the top in terms of efficiency.

Token Terminal's on-chain data is overwhelming: Celo is the tenth blockchain with the lowest transaction fees in the entire crypto ecosystem, with an average value below $0.000. But Celo's true strength lies in transfers of USDT, the most popular stablecoin with the largest market capitalization. Celo ranked as the fifth lowest L2 blockchain overall, and the first cheapest among all chains that mint USDT, recording an average of $0.0002 per stablecoin transaction.

To put this into perspective, while the Tron network (which handles over 50% of all USDT in circulation) recorded fees of $50.85 million in the last week, Celo barely reached $82.2 thousand in the same period. It's true that transaction volumes are not the same, as Celo, despite being the fifteenth blockchain with the largest USDT issuance, only has a market cap of $131.43 million in USDT according to Defillama, a small figure compared to the more than $151 billion USDT held globally. However, the gap in transaction costs is abysmal and underscores Celo's efficiency.

Why is Celo so cheap for USDT?

A technical feature that contributes to Celo's low fees is that 50% of gas fees on its network can be paid directly in USDT or other Mento ERC-20 stablecoins, in addition to its CELO governance token. This simplifies the process for stablecoin users and optimizes the flow of fees.

The recent activation of Celo's Isthmus upgrade on the Baklava testnet on June 11, according to a report by Gate.com, is a key step. This upgrade implements Ethereum's Prague features in its OP stack, marking a step toward Celo's full transition to Ethereum L2.

Celo: Building a Different Future with ReFi

Celo defines itself with the motto "Build Different" and positions itself as an Ethereum L2 that scales real-world solutions, pioneering a prosperous new digital economy for all. It is not just an efficient blockchain; it is a carbon-negative, permissionless network that supports both its CELO governance asset and other Mento ERC-20 stable assets.

Its interoperability, cross-chain compatibility, and its mission to create "conditions of prosperity for all" make it unique. Celo has the potential to bring the regenerative finance (ReFi) movement into the mainstream, accelerating global financial inclusion, community commerce, and the development of climate-positive technology across multiple ecosystems. In fact, Celo is one of the world's first Proof-of-Stake blockchains to be carbon-negative, meaning its consensus mechanism consumes only a fraction of the energy used by Proof-of-Work chains, making it a sustainable and ethical option.

Efficiency and Minimal Costs

Celo's transformation into an Ethereum L2 and its consolidation as the chain with the lowest USDT transfer fees are significant milestones. In a market where fees can be a barrier, Celo's value proposition resonates strongly, especially for those seeking efficiency and minimal costs for everyday transactions or remittances. Its commitment to ReFi and global financial inclusion, coupled with its positive environmental impact, position it not only as a superior technological option, but also as a leader in building a more equitable and sustainable crypto ecosystem.

Disclaimer: This article is for informational and journalistic purposes only and does not constitute financial advice or investment recommendations. The cryptocurrency market is highly volatile, and investments involve significant risks, including the possible total loss of principal. Readers are advised to conduct their own thorough research and consult a qualified financial professional before making any investment decisions.