In an impressive surge of growth, Binance’s Bitcoin Lightning nodes have experienced rapid expansion. Over the course of the past week, the count of Binance Lightning Network public channels has remarkably escalated, soaring from 7 to 33. Alongside this remarkable growth, the capacity of these nodes has undergone a substantial augmentation, leaping from 36 BTC to an impressive 77.73 BTC.
Presently, the cumulative Bitcoin Lightning Network capacity across the entire network stands at a noteworthy 4,859.37 BTC. Significantly, Binance has emerged as a prominent player within this network, securing the 14th position in terms of Lightning Network capacity nodes, a fact supported by data from Amboss.
The community’s response to recent developments shows that the Lightning Network’s total capacity remains below its previous peak. Whether it will reach a capacity of 5,000 BTC in 2023 is uncertain. Some individuals have expressed concerns about a potential decline in traction for the Lightning Network.
However, the exchange’s increasing involvement and influence in the Bitcoin Lightning Network highlight the constant evolution and expansion of the cryptocurrency landscape.
Binance Integration of Bitcoin into Lightning Network
This development follows the exchange’s recent announcement last month, wherein the cryptocurrency exchange successfully integrated Bitcoin into the Lightning Network (LN). This strategic move empowers Binance users to tap into the benefits of this scaling solution for both Bitcoin deposits and withdrawals.
As an additional deposit option, users can now select “BTC-
Lightning” alongside established choices such as Bitcoin, BEP20, SegWit, and others. By aligning itself with industry leaders like Kraken, OKX, Bitfinex, and River Financial, Binance joins the league of adopters embracing the layer 2 scaling solution.
The suspension of BTC withdrawals in May initially drove Binance’s decision to integrate the Lightning Network. A backlog of pending transactions caused this suspension due to a significant increase in BTC network gas fees.
In a bid to facilitate more cost-effective BTC deposits and withdrawals on its platform, Binance embarked on the operation of multiple nodes within the Lightning Network starting in June. With this remarkable progress, the exchange is setting the stage for enhanced accessibility and efficiency within the cryptocurrency trading landscape.