Lightning Network hits record capacity on crypto exchange adoption

Bitcoin layer-2, the Lightning Network, has reached a caller all-time capableness precocious amid accrued adoption from large crypto exchanges and functionality improvements. 

Lightning Network (LN) capableness reached 5,606 BTC connected Monday, beating its erstwhile grounds successful March 2023, according to Bitcoin Visuals.

LN analytics level Amboss besides reported a capableness highest of 5,637 BTC, worthy astir $490 million, connected Tuesday.  

Data shows a surge successful capableness successful November and December, pursuing a twelvemonth of declines, arsenic much Bitcoin was added to the network, enabling faster and cheaper transactions.  

The fig of Lightning nodes, which unfastened outgo channels with each different that are funded with Bitcoin (BTC), was astatine 14,940, down from a March 2022 highest of 20,700, portion the fig of channels betwixt those nodes was astatine 48,678, besides down from a 2022 peak. 

The information indicates that much Bitcoin is being added to the LN, but not needfully a corresponding summation successful usage, arsenic measured by the fig of nodes and channels. 

More companies are utilizing the LN 

“It’s not conscionable 1 institution that’s putting much Bitcoin into the Lightning Network; it’s crossed the board,” said Amboss.

It highlighted that ample crypto exchanges, specified arsenic Binance and OKX, person been depositing much BTC onto the LN this month, explaining the capableness jump. 

Large crypto exchanges person been adding much BTC to the LN. Source: Amboss

Related: Tether leads $8M backing for Lightning startup focused connected stablecoins

Stablecoin issuer Tether announced connected Tuesday that it has led an $8 cardinal concern circular successful Bitcoin startup Speed to alteration stablecoin payments connected the LN. 

Meanwhile, fashionable crypto wallet MetaMask added Bitcoin enactment this week, though it stated that transactions would usage the Native SegWit derivation way and not the Lightning Network. 

Taproot Assets gets an upgrade 

Lightning Labs announced connected Wednesday that it had upgraded Taproot Assets to v0.7, enabling reusable addresses, a afloat auditable plus supply, and larger, much reliable transactions.

Taproot Assets is simply a multi-asset Lightning protocol enabling assets similar stablecoins to beryllium minted connected Bitcoin and sent implicit the LN.

Stablecoins presently unrecorded mostly connected centralized oregon little unafraid networks, truthful Taproot Assets enables them to leverage Bitcoin’s information portion achieving instant, low-fee transfers done the LN. 

The caller auditable proviso diagnostic ensures transparency without requiring trust. Essentially, this could assistance Bitcoin and Lightning go a multi-asset network, said Lightning Labs. 

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