Bitcoin’s top scaling solution, the Lightning Network Capacity achieved another milestone this week. Reports show the second layer protocol’s capacity hit a new all-time high. The news comes on the heels of an in-depth report from the Federal Reserve discussing the merits of the Lightning Network. Both of these developments point toward further adoption of the off-chain solution.
The Lightning Network has seen considerable growth since it relaxed payment size restrictions and implemented upgrades like multi-channel payments for large transactions. According to data from Bitcoin Visuals, The Lightning Network now has an average daily capacity of +4,167. The Lightning Network capacity reached 3,962 BTC in June of this year.
A Wave of Adoption – Lightning Network Capacity
Lighting Network adoption has been driven by a steady integration into payment processors and exchanges. Additionally, there are now more payment channel operators and solution providers available to new users. These systems remove technical restrictions and make it easy for anyone to start securing returns using the Lightning Network.
CryptoCompare Asset Report Shows More Lightning is In Route
What's most interesting about the news is that it revealed that the Lightning Network Capacity is growing even while Bitcoin is losing value. The last month has been brutal for crypto traders across nearly every sector. Bitcoin is now down over 60% from its all-time high. Long-term hodlers are not worried, but new traders have shown high fear index readings.
The sudden drop in Bitcoin’s price can be attributed to many factors. The FED raised the interest rate and rising inflation has reduced investment funds for many. Additionally, the Luna Foundation sold its massive Bitcoin reserves. These factors combined to make the perfect storm that hit Bitcoin hard. The world's first cryptocurrency dropped $10,000 over the last month. Despite these losses, more traders are saving on their transactions using the Lightning Network.
The Lightning Network continues to accomplish its task to reduce the fees paid by Bitcoiners. The network's users reported lower fees and improved functionality. The Lightning Network provides Bitcoin with added options such as smart contract scalability and micro-transaction capabilities.
Another major development within the network occurred this month which has helped to improve the performance of the protocol. Lightning Labs released a major upgrade to the network. The Taproot Upgrade improves speed and makes the system more secure. It also reduces congestion further and improves performance.
The Lightning Network has started to make its way into major sports arenas. The Australian Baseball League partnered with Lightning infrastructure firm IBEX as part of a new campaign. The two seek to bring Bitcoin PoS systems to Empire Park. The advantageous plan is already in motion with users soon being able to pay for their favorite snacks with Satoshis.
The Lightning Network Brightens the Future
The Lightning Network has experienced a wild ride over the last two years. The system has grown from a concept into a massive second-layer ecosystem. There are now more games, exchanges, Dapps, and networks relying on this protocol than ever. As such, the Lightning Network has cemented its position in the market moving forward.