The Lightning Network, a second-layer payment protocol on Bitcoin, has achieved a new record high bitcoin capacity. On Saturday, it reached a capacity of 5,630 BTC, surpassing the previous peak of 5,620 BTC in April. The network’s capacity in U.S. Dollars also reached an all-time high, exceeding $172 million. This growth in capacity can be attributed to the increasing adoption of the Lightning Network over the past year. The Lightning Network operates as a network of bi-directional payment channels on top of the Bitcoin blockchain, enabling fast and cost-effective micropayments. It allows users to transact directly without immediate settlement on the main blockchain. David Marcus, CEO of Lightspark, emphasized the importance of building out the network’s infrastructure and capacity to enable larger payments. He believes that more exchanges should be on the network to facilitate the movement of bitcoin and serve as on and off ramps for the Lightning Network. The growth of the Lightning Network aligns with the recent price rise and increased adoption by crypto exchanges. However, it’s worth noting that bitcoin’s price is still down from its all-time high in November 2021.
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