Bitcoin Lightning Network’s Public Capacity Surpasses 5,000 BTC

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The com­bined capac­i­ty in pub­lic chan­nels of Bit­coin Light­ning Network’s total capac­i­ty in pub­lic chan­nels has crossed 5000 BTC for the first time.

BTC’s main scal­ing solu­tion, designed to make trans­ac­tions cheap­er and faster, has made some pos­i­tive devel­op­ments in recent times with expan­sion and devel­op­ment. The new feat comes less than four months after the capac­i­ty hit 4,000 BTC.

The Final Push

The more capac­i­ty on the LN net­work means more liq­uid­i­ty is on hand with which users can con­duct faster pay­ment speeds and poten­tial­ly larg­er trans­ac­tion vol­umes. Over the past four years since its incep­tion, the net­work has faced a num­ber of crit­i­cisms, main­ly from pro­po­nents of oth­er blockchains.

2022 may have been a tough year for the cryp­to mar­ket. But the scal­ing solu­tion has con­tin­ued its uptrend, albeit slow­ly. Its growth, espe­cial­ly through the cur­rent bear mar­ket, can be attrib­uted to organ­ic util­i­ty and the need for it, and now for spec­u­la­tion, trad­ing, lever­ag­ing, or any poten­tial pump-and-dump VC-fund­ed incen­tiviza­tion scheme that depends on using retail mar­ket play­ers as exit liquidity.

Mar­ket intel­li­gence plat­form, Mes­sari had recent­ly stat­ed,

“The Light­ning Net­work has been in its own siloed bull mar­ket over the past year, insu­lat­ed from the over­all mar­ket down­turn. LN’s key met­rics have steadi­ly grown, despite bitcoin’s price drop­ping 57% over the past year.”

The report sug­gest­ed that Light­ning chan­nel and node counts have increased 24% and 14% YoY, respec­tive­ly, which is indica­tive of the fact that the net­work is mov­ing away from a “hob­by­ist net­work” toward being a mature finan­cial pay­ment network.

Accord­ing to yet anoth­er data ana­lyt­ic plat­form, Arcane Research, the final push above 5,000 BTC, rough­ly worth $100 mil­lion, was large­ly dri­ven by Riv­er Finan­cial and Loop by Light­ning Labs expand­ing their chan­nel capacity.

El Salvador’s move to adopt Bit­coin as a legal ten­der, fol­lowed by large com­pa­nies such as McDonald’s and Star­bucks announc­ing inte­gra­tion to Light­ning pay­ments using third-par­ty soft­ware, were major mile­stones for the infrastructure.

Growth Trajectory

Light­ning Labs, the infra­struc­ture firm behind Light­ning Net­work, released the tes­net ver­sion of the Taro dae­mon to enable Bit­coin devs to cre­ate, send and receive assets on the Bit­coin blockchain. The alpha release was aimed to “Bit­coinize” the dollar.

The com­pa­ny also announced rais­ing $70 mil­lion in Series B fund­ing, led by Val­or Equi­ty Part­ners and joined by glob­al asset man­ag­er Bail­lie Gif­ford ear­li­er this year. The cap­i­tal infu­sion was said to help the net­work capa­ble of trans­act­ing tril­lions of dol­lars in vol­ume annu­al­ly, mak­ing it a com­peti­tor to the likes of Visa.

Tech­nol­o­gy com­pa­ny MicroS­trat­e­gy revealed seek­ing a full-time Light­ning Net­work soft­ware engi­neer, accord­ing to a job list­ing post­ed last month, to build LN-based soft­ware-as-a-ser­vice (SaaS) plat­form. Some of the firms that adopt­ed LN in 2022 are Cash App, Krak­en, Bit­Pay, and Robinhood.

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