Bitcoin Lightning Network Transaction Volume Has Increased More Than 400% In The Last Year

Bitcoin Lightning Network Transaction Volume Has Increased More Than 400% In The Last Year

The Lightning Network, Bitcoin’s “scaling solution” for quick payments, is growing rapidly throughout the world. Lightning payments are fast expanding, according to a recent study by Arcane Research.

The Lightning Network is intended to address Bitcoin’s slow throughput without compromising the Bitcoin (BTC) network’s security. Using the Lightning Network, millions of individuals may simultaneously send fractions of a bitcoin at lightning speed. The Lightning Network’s popularity has skyrocketed in the last year, and there’s still lots of space for expansion.

Arcane Research has discovered that the use of the Lightning Network is increasing dramatically, based on the collection of actual transaction data. According to Arcane, the number of payments has approximately doubled in the last year, while the value of the payments has surged by more than 400% 

When Arcane analyzed the overall payment volume in the first two months of 2022, it revealed that direct payments between individuals accounted for about half of the total payment value, such as remittance payments or purchases from other individuals.

A third of the remaining balance came via deposits and withdrawals to and from exchanges, with 20% coming from purchases of products or services handled through a payment processor or acquired indirectly through gift cards.

According to Arcane, just over 100,000 individuals had access to Lightning payments through an installed application in the summer of 2021, but by March 2022, that number had risen to more than 80 million people – a growth of 800 times. However, having access to Lightning-capable applications does not guarantee that consumers will utilize the functionality, but it does demonstrate how rapidly Bitcoin and/or Lightning apps are being adopted.

However, according to CryptoSlate, in November 2021, the total USD value locked (TVL) in the Lightning Network reached a peak of $216 million. Since then, TVL has dropped dramatically, and it now stands at $140 million. This, of course, corresponds to bitcoin’s declining USD price, as indicated by the quantity of Bitcoin locked (now 3.338k) reaching a peak in November 2021 and remaining constant during the slump time.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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