Lightning Network Hits All-Time High In Bitcoin
The Lightning Network, a Bitcoin second-layer payment protocol, has set a new all-time high in bitcoin capacity — the amount of bitcoin locked in payment channels on the network.
According to The Block’s data dashboard, the record capacity of 5,630 BTC was reached on Saturday, breaking the previous peak of 5,620 BTC set on April 18. The network’s capacity in US dollars also surpassed $172 million for the first time. Over the last year, Lightning Network capacity has increased by 42% and 105% in bitcoin and US dollars, respectively, as adoption has increased.
Lightning Network is a bi-directional payment channel on the Bitcoin blockchain, enabling fast and cost-effective micropayments. It offers a solution to slower transaction speeds and higher fees associated with Bitcoin’s mainnet. Users can open payment channels between themselves, allowing off-chain transactions later settled on the blockchain. The network’s growth coincides with price rise and increased adoption from crypto exchanges, as well as the rise in popularity of Ordinals, NFT-like tokens minted on the Bitcoin blockchain.
(With inputs from Shikha Singh)
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