While the current performance of Bitcoin might leave a lot to desire, members of the crypto community have a reason to smile as the capacity of the Bitcoin lightning network reached a new all-time high.
According to the latest data on the network’s capacity, it now can process over 4000 BTCs.
For context, the network could only accommodate 1000 BTC as of last year, but now the network’s capacity has grown by over 400% within the previous twelve months.
Crypto analysts have observed that the growth can be linked to the increasing comfort users get while using the network. Aside from that, many users have also tagged its confirmation times as “reasonable.”
It was also revealed that the growth of the network could also be tied to the high level of Bitcoin adoption. Last year, the flagship digital asset became a legal tender in El Salvador and was also accepted as payment by various businesses.
According to the CEO of Fast Coins, Danny Brewster, BTC’s lightning network capacity probably passed the 4K mark a long time ago.
In his words, “the constant growth has been a great start for the Lightning Network, and I foresee it continuing into the future, as long as all stakeholders, from developers to entrepreneurs building businesses, continue to push forward.”
Bitcoin Lightning and Other L2 Networks
Layer 2 networks like Bitcoin lightning network and others on Ethereum like Arbitrum, Optimism, and others have gained wide publicity and usage.
The Bitcoin lightning network has provided a cheaper and faster source of sending units of the coin. According to available data from 1ML, the average cost of sending Satoshis is well under $0.01.
This, no doubt, has played a role in its high adoption rate in May —it grew by over 6%, which is the fastest growth rate recorded since October 2021.