The Lightning Network Sets New Record for Capacity
The Lightning network recently achieved a new record for capacity, reaching 5,630 bitcoins, equivalent to around $172 million. This represents a 12% increase in the first six months of 2023 and a more than 40% increase compared to a year ago. The increase in capacity took place mainly in the middle of 2022 and has continued to rise, reaching a new all-time high in June.
Key Points
- The Lightning Network is a network of nodes that connect channels, which function as wallets.
- The number of channels has decreased from an all-time high of almost 88,000 in February 2022 to around 75,000 currently.
- The average channel capacity has significantly increased from 2.8 million satoshi at the beginning of 2021 to 7.3 million currently.
- The increase in capacity is likely due to the disappearance of smaller channels and the use of Lightning Network for more serious transactions.
- The growth in capacity is primarily driven by Bitfinex, which generates 12,000 transactions per month with a total liquidity of 1,300 BTC.
Hot Take
The Lightning Network’s record-breaking capacity reflects its potential to revolutionize cryptocurrency payments. By offering fast transactions and reducing costs, the network makes cryptocurrency more accessible and scalable, paving the way for greater adoption. Bitfinex’s active support and involvement in the Lightning Network contribute to its success and showcase its value in shaping the future of digital payments. As more people recognize the benefits of high speed and immutability in bitcoin transfers, the Lightning Network is expected to continue growing.
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