Lightning Network Capacity Reaches 5,000 BTC

A new milestone has been reached by Bitcoin Lightning Network. For the first time ever, the total public capability had exceeded 5000 BTC. This is in line with the rising trend for 2022. This milestone further demonstrates the potential and promise of Bitcoin Lightning. As always, the reason for this big push was important.

Bitcoin Development is on the Rise

Bitcoin’s continued development is a major reason why it remains so valued today. The bitcoin network is the most decentralized in the world and developers are constantly looking to find new ways for the network’s offerings to be used by mainstream users.

Lightning Labs, a developer firm that focuses heavily on Bitcoin development, was responsible for the all-time highest Lightning network capacity. This developer increased the capacity of River Financial’s Loop channel, which allowed the network to accept more BTC. The new Taro Protocol was also introduced last week. Lightning Labs are continuing to increase the network’s capabilities.

Bitcoin Lightning network

 Source: Arcane Research| Source: Arcane Research

BTC-users are increasingly embracing the Bitcoin Lightning Network. MicroStrategy is a major investor in Bitcoin and posted an open job posting for a full time lightning network engineer. According to reports, MicroStrategy is seeking to create a Lightning network-based SaaS platform that can be used for enterprise and e-commerce.

Taro Protocol mentioned earlier is working to make it easier for developers to send and mint new bitcoin tokens. Consider the Ethereum ERC tokens. This will allow NFTs to be created on bitcoin blockchains, and it will expand the options for creating stablecoins. 

Bitcoin price chart from TradingView.com

 Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com

Due to its high speed, the Lightning Network has been increasingly used in crypto payment services. El Salvador has adopted the Lightning network in order to make it simpler to use BTC to pay. Strike was able to raise $80 million to help expand its Lightning network-based payment options for merchants in September.

As the Bitcoin network grows, Layer 2 solutions such the Lightning Network will become more crucial. Charles Hoskison, Cardano’s founder, recently stated that the vast majority of BTC would likely be outside the Bitcoin network over the next five-years and will therefore need to be protected by these Layer 2 solutions.

Featured Image from Coindesk. Charts from Arcane Research and TradingView.com.

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