Record Increase in Bitcoin’s Quarterly Transactions
A recent study conducted by Kaminari reveals that the use of bitcoin for transactions has seen steady growth over the past few years, with a notable increase in the third quarter of 2023, where 40 million transactions were settled. This surge in transactional activity can be attributed to the growing adoption of the Lightning Network (LN) by crypto exchanges and other platforms, as indicated by Kaminari’s market research data.
Centralized Exchanges and the Lightning Network
The study highlights that centralized cryptocurrency exchanges have played a significant role in driving the adoption of the Lightning Network. Prominent platforms such as Binance, Okx, and Bitstamp have recently joined the LN ecosystem. However, despite their potential to further enhance the adoption of the Lightning Network, only a small percentage (just over 6%) of centralized exchanges have integrated the layer 2 protocol.
Stablecoins on the Lightning Network
The research also emphasizes the growth potential for the Lightning Network in the context of crypto wallets. While custodial and non-custodial wallets are key drivers for LN, the majority of popular wallets have yet to integrate it. Only two out of the top 10 wallets in terms of user count, Exodus and Bitpay, have embraced Layer 2. The report also predicts that the RGB and Taproot Assets protocols will enable the creation of stablecoins compatible with the Lightning Network, potentially leading to a significant migration of USDT transactions from Tron and Ethereum to LN.
Hot Take: Increased Adoption of Lightning Network Facilitated by Crypto Platforms
A recent study by Kaminari highlights the growing use of bitcoin “as a transactional layer,” driven in part by the increased number of crypto platforms joining the Lightning Network ecosystem. The study found that while centralized crypto exchanges have been key in driving this adoption, only a small percentage of them have integrated the layer 2 protocol. Additionally, the research points out the growth potential for the Lightning Network in the context of crypto wallets, with the majority yet to embrace it. The upcoming RGB and Taproot Assets protocols could enable the creation of stablecoins compatible with LN, potentially leading to a migration of USDT transactions.
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