Bitcoin Lightning Network growth capacity plateaus at 3,400 BTC

Following an exponential ascent successful capableness implicit 2022, the Bitcoin (BTC) Lightning Network made a lackluster commencement to the caller year. According to a study by Arcane Research, maturation successful the Lightning Network capacity, oregon the fig of BTC locked up successful channels, has stuttered. 

The Lightning Network surged from 1,000 to 3,000 BTC successful conscionable 8 months successful 2021, striking the 3,000 BTC people successful mid-October.

While the web continues to onslaught all-time highs, maturation grinds down. The full BTC locked successful the web is peaking conscionable shy of the 3,500 BTC mark, sparking statement and treatment connected societal media.

As a speedy refresher, the Lightning Network is 1 reply to the scalability contented that plagued the Bitcoin protocol. Lightning allows instant and ace low-cost off-chain transactions; however, it requires Bitcoin to beryllium locked up successful outgo channels distributed crossed lightning nodes. 

Lightning Network enactment soared successful 2021, chiefly acknowledgment to El Salvador onboarding a full country and Twitter integrating Bitcoin Lightning tipping. In an October report, Arcane Research predicted that determination would beryllium 700 cardinal Lightning Network users by 2030.

So wherefore has maturation slowed successful 2022? Bitcoin Lightning Network+ Twitter relationship stated that platforms specified arsenic Umbrel (an casual to acceptable up node and lightning node service), sent archetypal maturation to the moon. Naturally, owed to S curve growth, it would person to plateau.

Danny Scott, CEO and Co-Founder astatine CoinCorner, the UK’s starring lightning exchange, told Cointelegraph:

“I don't deliberation we're seeing maturation of the Lightning Network plateauing astatine all. We saw a large maturation spike owed to past year's quality and maturation would present look to beryllium much organic.”

S-curve adoption plateaus to 1 side, helium notes that “December is simply a vacation play for galore astir the satellite and often erstwhile the Bitcoin manufacture slows down.”

Rene Pickhardt, co-author of the “Mastering the Lightning Network” book, explained that the slowdown successful maturation could really beryllium a bully happening for Bitcoin. He Tweeted:

“Given the information that node number tin lone turn with channels and that the transmission maturation is constricted by retention constraints successful Bitcoin, we mightiness lone person a precise abbreviated play of clip with exponential growth. After that, we volition beryllium astatine champion linear.”

Looking forward, lightning whitethorn onslaught doubly for the 2nd furniture Bitcoin solution. A wealthiness of updates and quality whitethorn spark further growth, specified arsenic the American mobile outgo work Cash App which rolled retired Lightning Network integration to its circa 30 cardinal users.

Indeed, amended UX and casual lightning integration for existing apps and exchanges mightiness beryllium the daze that the web needs. Danny sheds airy connected the situation:

“Once we introduced "Lightning Addresses" (eg. [email protected]) to marque it easier for our customers to person Lightning payments we person seen an unthinkable uptick successful usage.”

The Arcane Research insubstantial agrees with CoinCorner that the Lightning Network could beryllium entering a caller maturation phase; the champion could beryllium yet to come.