Bitcoin Lightning network capacity hits new all-time high: factors

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The rise of The Lightning Network is one of the most important stories of the year. On the back, El Salvador could adopt Bitcoin as legal tender. Bitcoin Beachs’ implementation of The Lightning Network served as a use case that proved to be trusted. And then, a whole country uses it on a daily basis. Since then, the network has continued to grow day after day, month after month. And its public capacity has just reached an all-time high.

Related reading | BTC + Energy consumption of Lightning networks vs. The world, a comparison

Nowadays, the liquidity released in the Lightning Network has reached 3225 BTC. The little engine that could continue to move forward, to grow, to surprise the whole world. In addition, it is also proving to be fertile ground for innovation. The number of companies joining it continues to grow. And so does the number of institutions that adopt it and integrate it into their plans.

Arcane Research’s latest weekly update says:

We seem to be approaching the precipice of an inflection point where more and more manufacturers are coming out of the sidelines to bring new products to market that take advantage of Lightning.

The report also contains this graph which shows the acceleration in the growth of public capacity since El Salvador made Bitcoin legal tender.

Total Public Capacity of the Lightning Network | Source: Arcane Research Weekly Update, Institutional and Entrepreneurial Adoption of the Lightning Network

As you read this, the Adopting Bitcoin conference is taking place in El Salvador. Its slogan is A Lightning Summit, and its slogan Unite, focus, collab! According to their website, the goal of the summit is to bring together the Bitcoin and Lightning community in San Salvador and El Zonte to bond and foster the future of money and payments in the Central American Republic. That says a lot.

At this conference, John Carvalho, former CCO of Bitrefill, announced his new company:

This is the philosophy that gave birth to Synonym, a British Virgin Islands-based company whose ambitions extend to building peer-to-peer applications and protocols on the Bitcoin Lightning network.

Synonyms’s launch product is Slashtags: a Chrome-compatible wallet with ambitions beyond bitcoin trading. With it, users can sign up to different websites without a password and through an ecosystem that allows them to control all data.

This is just one example of entrepreneurial adoption from the Lightning Network. Among the examples of institutional adoption, Twitter’s recent tip feature comes to mind. Content creators with a Strike account can already receive tips through The Lightning Network through their Twitter profiles. For additional examples, let’s cite The Weekly Update again:

Bitcoin Suisse, Switzerland’s largest bitcoin broker, recently announced that it has made Lightning Network technology available for its crypto payment system. Additionally, last week Bitfinex enabled flash deposits and withdrawals.

BTC price chart for 11/17/2021 on Bitstamp | Source: BTC / USD on TradingView.com Beyond Total Public Network Capacity

In October, Arcane Research released its The State Of Lightning report. In it, they propose another metric to measure network growth.

The wallet’s payout volume has grown far more than the most commonly cited growth measure, total channel capacity, over the past year. The payment volume of the wallet increased by 20% per month from the beginning of 2021 to the end of August, the equivalent number for the capacity of public channels being 10%. In September, the gap widened further, as the volume of payments almost doubled against a 26% increase in the capacity of public channels.

Related reading | A harsh criticism of Bitcoin Maximalists from the Lightning Network

So, as all of these stats and analyzes show, The Lightning Network is going parabolic. And the show has only just begun.

Featured Image: Boboshow on Pixabay | Charts by TradingView

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