Cryptocurrency Despite the general downward trend in the market, bitcoin The Lightning Network continues to grow and a new milestone has been reached.
Record Breaks in Capacity of Bitcoin Lightning Network
According to data from cryptocurrency analysis company Glassnode, the total capacity of the BTC Lightning network in open channels has reached 4,290 BTC. According to on-chain data, this represents an increase of 36.6% and 1,102 BTC since November, when the price of Bitcoin broke a record by exceeding $ 68,000.
Glassnode explained the development as follows:
“Bitcoin Lightning Network capacity on partner channels continues to push towards new highs despite current bear market hurdles.”
#Bitcoin Lightning Network capacity in public channels continues to push to new highs, despite prevailing bear market headwinds.
Total capacity is now at 4,290 $BTCwhich has increased by 34.6% since the November market peak.
Live Chart: https://t.co/NaIeeNilt8 pic.twitter.com/x2wlISIjF4
— glassnode (@glassnode) July 22, 2022
The Meaning of BTC Lightning Network Growth
With recent developments, it appears that there has been growth in terms of trust and usage, as well as improvements to the network.
In particular, the Lightning Network, a layer-2 scaling solution designed to make BTC transactions faster and cheaper, continued to increase its use cases. For example, El Salvador’s adoption of BTC as a legal currency provided a real-world use case for the platform.
Furthermore, the increased capacity will potentially lead to an increase in BTC’s day-to-day use cases, payments and investment opportunities that drive the asset’s adoption. As BTC continues to be used as a store of value, the growth of the Lightning Network could help bring the world’s largest cryptocurrency into the mainstream.
The impact of the Lightning Network was highlighted in a recent study by the Federal Reserve Bank of Cleveland:
“We found a significant correlation between the adoption of the Lightning Network and the reduction of Blockchain congestion, suggesting that the Lightning Network helps improve the efficiency of Bitcoin as a means of payment.”
*Not investment advice.