The constant growth of Lightning Network (LN) it continues to accelerate after hitting another milestone undeterred by the ongoing bear market.
Notably, the total capacity of the Lightning Network (LN) on public channels has reached 4,290 BTC, an increase of 34.6% and +1,102 BTC after the price of Bitcoin recorded the last all-time high of almost $70,000 in November. last year, according to glass node data.
The platform revealed:
“Lightning Network (LN) capacity on public channels continues to hit new highs, despite prevailing bear market headwinds.”
Capacity of the public channel of the Bitcoin Lightning Network. Source: Glassnode
Implication of LN growth
Based on the most recent growth, it can be interpreted as increased network reliability and utilization, even as it matures along with improvements.
In particular, the Lightning Network, a layer 2 scaling solution designed to make BTC transactions faster and cheaper, has continued to gather use cases. For example, the adoption of Bitcoin as legal tender in El Salvador has provided the platform with a real-world use case.
Additionally, the increased capacity will potentially lead to an increase in everyday use cases for Bitcoin, such as payments and investment opportunities that drive adoption of the asset. The progress is expected to potentially push Bitcoin into the mainstream as the cryptocurrency continues to make its case as a store of value.
LN’s impact was highlighted in a study Recent Federal Reserve Bank of Clevelandaccording to the bank:
“We found a significant association between LN adoption and blockchain congestion reduction, suggesting that LN has helped improve the efficiency of Bitcoin as a means of payment. This improvement cannot be explained by other factors, such as changes in demand or the adoption of SegWit.”
Bitcoin maintains short-term rally
It is worth mentioning that LN’s capability highlights the continued adoption of technology despite the unstable price of Bitcoin. Notably, since the last record, Bitcoin has corrected by more than 70%, with the asset currently trying to hold its value above $20,000.
