If the price of Bitcoin (BTC) is often at the center of analyses, it may be interesting to look at the use cases created in its ecosystem such as the Lightning Network. How is the adoption of this layer 2 dedicated to fast and inexpensive payments going?
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How is Lightning Network adoption going?
The Bitcoin (BTC) Lightning Network is known for its ability to provide very fast and inexpensive payments to its users. On the occasion of its adoption by Binance to streamline the transactions of its users, it is interesting to review key network stats to gauge its growth.
👉 What is the Lightning Network?
First, we can stop at the capacity of the network. We note that despite significant withdrawals about ten days ago, the Lighting Network is currently powered by over 4,950 BTCaround 10% below its all-time high of 5,500 on April 17.
As shown in the graph below, the capacity of layer 2 is not correlated during the BTC (in black), and tends to evolve independently :
Figure 1 — Lightning Network capacity in BTC, compared during the latter
The second important metric is the amount of nodes present on the network. Here, this stat keeps some correlation to the price of Bitcoin, at least since 2022. As shown in the chart below, a peak was reached at over 20,500 knots in March 2022, and after a drop to 15,000 one year later, these now number 19,000 :
Figure 2: Number of nodes on the Lighting Network
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Channel update
To communicate with each other and make cash movements more efficient, Lightning Network nodes are connected to each other through channels.
After a year of stagnation in 2022 around 86,000 then a drop to 67,000, this number of channels seems to be on the rise again and is currently evolving at nearly 75,000 :
Figure 3 — Quantity of channels on the Lightning Network
Today, we note that on average, a node is connected to just under 8 channelswhich is much less than the 20 in March 2019. Nevertheless, it is a question of putting this average into perspective, because at the time, the network had barely 4,000 nodes:
Figure 4 — Average number of channels per node on the Lightning Network
As we have seen through these various statistics, despite a short slowdown caused by the bear market, Lightning Network growth continues. However, the margin for progress remains enormous, given that its capacity today reaches “only” 148.5 million dollars. We may come back to these different statistics in the future, as the ecosystem as a whole grows.
👉 Also in the News — Binance Email Leak Casts Doubt on Reasons Behind Recent Layoffs
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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