Bitcoin Lightning Network is seemingly unaffected by the turbulence in the crypto market as it creates a new milestone. As per the data from Glassnode, on July 22nd, the total capacity of Bitcoin Lightning Network in public channels recorded a 34% rise, +1,102 BTC. Taking the Bitcoin Lightning Network’s capacity to 4,920. This increase is after the top cryptocurrency all-time high in November 2021. The cryptocurrency analysis platform also noted that the capacity of the Bitcoin Lightning Network in public channels is constantly climbing to new heights despite the recent crypto market crash.
To the uninitiated, Bitcoin Lightning Network is a second layer added to Bitcoin’s network. It enables off-chain transactions. Off-chain transactions refer to transactions done between parties off of the blockchain. Bitcoin Lightning transactions accelerate transaction processing and drastically reduce the associated cost of the blockchain.
What Does The LN Growth Indicate?
The expanding capacity indicates the increasing use-cases of Bitcoin. With the enhancement in the crypto network, the network is maturing with each passing day. Thus further instilling trust among users. The rise in the network’s capacity will eventually lead to the increasing use-cases of BTC. Making the top cryptocurrency a mainstream entity promotes its ability to store value.
Meanwhile, a study by the Federal Reserve Bank of Cleveland pointed out the correlation between LN and the decreased Bitcoin congestion. Congestion is when the number of transactions on the blockchain exceeds the capacity. According to the bank, the LN has enhanced the efficiency of Bitcoin as a means of payment.
The recent ‘crypto winter’ has shaken almost every crypto entity. Bitcoin too suffered its wrath. The largest cryptocurrency is around 70% far from its ATH of $69,045.00.Though it seems to be tracing a recovery path. In the last seven days, BTC has jumped around 11.49%. At the time of writing, its value stood at $22,891.06, a 1.26% drop in the last 24 hours.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
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