Lightning Network records new capacity record
Lightning Network records new capacity record Lightning Network records new capacity record

Bitcoin’s second layer paymentprotocol, Lightning Network

, is growing rapidly. Over the past few months, its usage and capacity has increased significantly.

Lightning Network was proposed in 2015 and launched in beta in 2018. The protocol allows users to send fast and cheap transactions through payment channels. Unlike a layer based directly on Bitcoin, Lightning transactions are processed “off-chain” (off-chain

) through a mechanism that allows nodes to track possible transaction routes.

Arcane Research released a report

yesterday wondering if the Bitcoin-based network will experience similar growth to decentralized finance in July 2021. During this period, mania broke out and the industry became interested in DeFi.


research firm’s data shows that Lightning Network

its capacity from 1100 to 1200 in 39 days. Another 34 days led to an increase from 1200 to 1300 BTC, as evidenced by the following graph:

source: Arcane ResearchAt the

moment, Bitcoin’s Lightning Network has a capacity of

about 1800 BTC. It took the protocol 5 days to grow from 1700 BTC to the current levels of BTC worth about $60 million.

At the beginning of 2021, the rate was 1040 BTC. This gives a 70% increase in less than six months. In comparison, it took the network 3 years to go from a capacity of 0 to 1000 BTC.

Consequently, there has been an exponential increase in the number of nodes activated in the network. This indicator stands at 22,705. Arcane Research experts pointed out that only 12,079 are operating as active channels of the

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“The rapid growth could be a consequence of the increased use of Lightning Network, which has seen more exposure and demand in recent weeks, and the Salvadoran government making bitcoin legal tender.”

Can bitcoin jump to the mainstream on the shoulders of the Lightning Network?

This factor could be the first step for BTC to reach a wider user base. The Bitcoin Beach

initiative in El Salvador has shown that BTC can be used in an everyday, low-cost use case.

As former Google employee Michael Levin argues in his article titled “Lightning Network, Bitcoin’s Crossing the Chasm Superpower,” the payment protocol could fuel a new wave of BTC adoption. According to the adoption curve, bitcoin is in its early stages and needs to bridge the gap between it and theearly

majority. source: Michael Levin

Users in this group tend to be more pragmatic and have specific needs that require solutions that cater to them. Lightning Network’s fast, low-cost transactions can be ideal use cases for Bitcoin to establish a “foothold” in the mainstream. Levin wrote,

“With Lightning Network and motivated individuals, the Bitcoin network unlocks the power of human ingenuity and optionality in the race to leap


chasm [labeled as chasm

in the

graphic above – ed. note].”

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