Research has shown that the Lightning Network continues to expand regardless of Bitcoin's market actions. The second layer protocol has found a home in a huge array of applications from saving exchange users on fees to government-funded programs. Here's some insight into the Lightning Network’s meteoric rise and how it's maintaining its altitude during turbulent times in the market.
The Stats Don’t Lie
Researchers at River, a Bitcoin-exclusive trading platform, recently conducted a report that has some truly eye-opening revelations. The report demonstrates how the Lightning Network has seen massive adoption over the last two years. Specifically, the network expanded 546% between August 2021 and the same time this year.
The 1,212% growth in two years is remarkable for any platform. To put the growth in perspective, August 2023 saw 6.6 million routed transactions compared to the same time in 2021 which only accounted for 503,000 transactions.
Senior analyst, Sam Wouters, also pointed out a significant boost in transactions that require more than two nodes to complete. Multi-node transactions are a new feature that has seen great success by enabling users to complete more complex transactions. Additionally, this structure has improved the Lighting Network's user confidence.
Adoption is Much Larger than it Seems
Remarkably, the report shows that the Lightning Network is steamrolling towards mainstream adoption. The stats demonstrate growth but leave out a lot of other factors including private Lightning transactions or those between only two participants. As such, the network is even larger than reported.
What's Driving Lightning Network Adoption?
When you delve deeper into the factors behind the adoption, it's easy to see that new tech sectors are a force. According to the report, 27% of transaction growth comes from a rise in P2E gaming, social media tipping, and the introduction of Bitcoin-powered streaming options. Many of these sectors rely on the Lighting Network to support micro-transactions.
The same report accredits the network's additional stability as one factor helping the platform expand. People often forget that the Lightning Network is still in its BETA testing stage despite being over 3 years old. According to reports, the network now has a 99.7% success rate which makes it the ideal solution for the majority of Bitcoin users seeking a break from high fees and delays.
The added stability of the network comes from some recent developments. For example, the structure of the off-chain protocol requires users to have enough liquidity in the payment channel to send and receive funding. This requirement has caused issues in the past which led to failed transitions.
Recent upgrades have solved this issue. The introduction of multi-layer hops makes it easier to send large payments without incurring massive fees. Today, Lightning Network users enjoy top-notch stability and proven security from a convenient interface.
The Lighting Network Adoption is on the Rise
Despite your position on the Lightning Network, it has matured to the point where it's impossible to deny its usefulness. This second-layer protocol has made life easier for the average Bitcoiner. Even entire nations have embraced Lightning Network-powered blockchain assets. For these reasons and many more, the Lightning Network remains an inspiration in the market.