Bitcoin’s Lightning Capacity has hit a new record of 5000 BTC, roughly worth $98 million, data from Bitcoin Visuals showed.
The Lightning Network, a layer-2 payment mechanism built on top of Bitcoin’s foundation layer, enables very immediate transaction completion.
Users can send Bitcoin [or satoshis, the smallest unit of a Bitcoin] using the LN to send or receive money more quickly and with cheaper fees.
The amount of available liquidity increases as network capacity increases. Users may thus enjoy quicker payment processing times and possibly higher transaction volumes.
In August 2020 and July 2021, respectively, the layer-2 technology became the first to break the 1,000 and 2,000 Bitcoin barriers. In just 18 months, the capacity has doubled.
“We had modest and steady growth with Lightning capacity to begin, but since Jan[uary] 2021, the rise has been tremendous,” CoinCorner CEO Daniel Scott told in an interview.
Bear markets are used to expand the layer-2 Lightning Network’s capacity. Despite macroeconomic headwinds and dull price movement, the Lightning Network is still thriving.
First introduced in 2018, the LN has recently faced criticism. Influential Bitcoin users like Udi Wertheimer have talked about the network’s “collapse,” asserting that no one utilizes it.
However, the network’s capacity of 4,000 BTC was reached in June, and over the previous four years, it has developed into a trusted payment network that is well-liked in Gibraltar, the Isle of Man, and El Salvador.
Bitcoin’s Lightning Network Gets Major Boost
That said, LN market leader, Strike in collaboration with investors like Ten31, Washington University in St. Louis, and the University of Wyoming, has raised $80 million in funds.
The financial backing will support Strike’s initiatives to transform payments for the biggest retailers, online marketplaces, and financial institutions.
On the other hand, according to a job posting posted this week, the mobile software, cloud-based services, and business intelligence [BI] company Microstrategy is looking for a full-time Lightning Network software developer.
If hired, the developer will create a Lightning Network-based software as a service [SaaS] platform for the business that will connect with businesses searching for payment solutions as well as be utilized for e-commerce use cases.