Bitcoin’s Lightning Network Experiences 1,212% Growth in Two Years
The Layer 2 Lightning Network of Bitcoin has seen a remarkable growth of 1,212% over the past two years. In August 2023, the network recorded around 6.6 million routed transactions, a significant increase compared to the 503,000 transactions observed in August 2021, as per data from River’s Bitcoin-only exchange.
Surprising Growth Amidst Market Challenges
In an Oct. 10 report, Sam Wouters, a research analyst at River, highlighted this impressive growth. Despite a 44% drop in Bitcoin’s price and reduced online interest, the number of routed transactions rose. Wouters humorously commented on Twitter that the phrase “Nobody is using Lightning” should now be considered outdated.
“Nobody is using Lightning” should now be a dead meme.
Launching a new #Bitcoin report from @River: How the Lightning Network grew by 1212% in 2 years payments on its platform in August 2023 across 308,000 transactions. Payment route liquidity limitations were identified as the primary cause of transactions.
River’s dataset comprised 2.5 million transactions, with the nodes in this dataset accounting for 29% of the network’s total capacity and 10% of its payment channels.
The continued expansion of the Lightning Network, coupled with its impressive transaction volumes, raises questions about Bitcoin’s future as a medium of exchange.
Lightning’s outperformance compared to on-chain Bitcoin transactions in terms of velocity suggests that Bitcoin’s transformation into a widely accepted medium of exchange is well underway.
Hot Take: Lightning Network’s Astonishing Growth Indicates Bitcoin’s Potential as a Medium of Exchange
The recent exponential growth of Bitcoin’s Layer 2 Lightning Network, with a staggering 1,212% increase in just two years, showcases the network’s potential as a medium for transactions. Despite market challenges such as a significant drop in Bitcoin’s price and reduced online interest, the number of routed transactions on the Lightning Network has surged. This growth challenges the perception that “Nobody is using Lightning” and highlights the network’s increasing relevance.
The expansion and impressive transaction volumes of the Lightning Network raise questions about Bitcoin’s future as a widely accepted medium of exchange. The network’s velocity surpassing on-chain Bitcoin transactions suggests that Bitcoin is on its way to becoming a widely adopted medium for daily transactions.
By
By
By
By
By
By