More than 2,000 fans flocked to the star-studded Sons And Daughters celebration at The Venue, an arena built especially for the 2013 honour.
Coyle jetted in from Los Angeles to perform at the event, where she sang a medley of Girls Aloud hits, and Snow Patrol played their track Just Say Yes - which was the theme for Derry's winning bid to become the U.K. City of Culture.
The Undertones, Glee star Damien MCGinty, and The Priests also joined the line-up, and actors Amanda Burton and James Nesbitt made special appearances onstage.
Coyle says, "It really is special. This is a huge production and it's great to be back for City of Culture," and Nesbitt adds, "It's a chance to show what's great about the place. Derry is a city that can really breathe now and look forward with great excitement and pride."
The area is expected to receive a significant boost as it plays host to 140 events in 2013.