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Lightning Network Hits ATH in USD Transactions

Mon, 06/26/2023 - 13:15
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Godfrey Benjamin
Bitcoin Lightning Network has seen growth in its USD capacity
Lightning Network Hits ATH in USD Transactions
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The sentiment that surrounded Bitcoin (BTC), the world's largest cryptocurrency by market capitalization, has also had a ripple effect on the Lightning Network, the Layer 2 protocol built on BTC to bolster payment efficiency. According to data from The Block's dashboard, the Lightning Network printed a new all-time high (ATH) in its U.S. dollar capacity from inception to date.

Zooming in on data

Per the data, Lightning Network has finally breached a record-high capacity of 5,630 BTC worth approximately $172 million for the first time since April. While that growth has proven the high adoption of the Lightning Network, the protocol's Bitcoin capacity has soared as high as 42% while the capacity in U.S. dollar is up by a massive 105%.

That more BTC are now locked on the network is a testament to the positively growing perception of users on the proficiency of the cryptocurrency to serve as an alternative payment method.

The launch of the Lightning Network was aimed at addressing some of the key woes of the premier blockchain as it concerns high fees and slow speed. Lightning Network is notably faster and cheaper, and it represents to the Bitcoin ecosystem what Layer 2 protocols like Arbitrum (ARB) and Polygon (MATIC) are to the Ethereum (ETH) blockchain.

Bitcoin Lightning Network Coming to Binance, Here's Proof

Over the course of the past year, many prominent platforms have integrated the protocol to better serve their communities.

Impact on Bitcoin's outlook

The total funds being locked in the Lightning Network payment rails are not necessarily truly locked, as we see in decentralized finance (DeFi) funds.

However, the locking introduces scarcity, which in turn can impact the underlying growth trends of the cryptocurrency. Bitcoin is seeing heightened sentiment following the spot Bitcoin Exchange Traded Fund (ETF) application made by BlackRock and Fidelity Investments, among others, and the new records printed by the Lightning Network can generally compliment sentiment across the board.

Bitcoin is changing hands at a price of $30,321.20, down by 1.08% over the past 24 hours.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.