The capacity of the bitcoin lightning network has reached a new historical maximum: Factors

The rise of The Lightning Network is one of the most important stories of the year. On his back, El Salvador could accept Bitcoin as legal tender. Bitcoin Beach’s implementation of The Lightning Network served as an example of use that showed that it could be relied upon. And then the whole country uses it every day. Since then, the network has been growing day by day, month by month. And its public capacity has just reached an all-time high.

The liquidity released to Lightning Network has now reached 3225 BTC. A small engine that can keep moving forward, it grows and surprises the whole world. Not only that, but it is also proving to be a fertile ground for innovation. The number of companies that build on it is also constantly growing. As well as a number of institutions that have adopted it and integrated it into their plans.

Last Weekly update from Arcane Research says:

“We seem to be approaching the abyss of the inflection point, where more and more builders are leaving the siding to bring new products that use Lightning to the market.”

The report also includes this graph, which shows the acceleration in public capacity growth since El Salvador has become bitcoin legal tender.

Lightning Network capacity growth chart

The Lightning Network's Total Public Capacity | Source: Arcane Research's The Weekly Update

Institutional and business acceptance of the Lightning Network

As you read these lines, there is an “Adopting Bitcoin” conference in El Salvador. His the slogan is “A Lightning Summit” and its slogan is “Unite, focus, collab!” to their website, the summit aims to “unite the Bitcoin and Lightning communities in San Salvador and El Zonte to forge connections and support 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 act:

“This is the philosophy that gave birth to Synonym, a company based in the British Virgin Islands, whose ambition goes towards creating peer-to-peer applications and protocols at the top of the Bitcoin Lightning network.

The Synonym product mentioned is Slashtags: a Chrome-compatible wallet whose ambitions go beyond bitcoin transactions. This allows users to log in to various websites without a password and through an ecosystem that gives them control over all data. ”

This is just one example of Lightning Network’s business adoption. Among the examples of institutional acceptance, I think of the recent Twitter betting feature. Strike content creators can now receive tips through The Lightning Network through their Twitter profiles. For more examples, let’s quote The Weekly Update again:

Bitcoin Suisse, the largest bitcoin broker in Switzerland, recently announced that it has made Lightning Network technology available for its crypto payment system. In addition, last week Bitfinex enabled flash deposits and withdrawals. ”

BTCUSD price chart for 11/17/2021 - TradingView

BTC price chart for 11/17/2021 on Bitstamp | Source: BTC/USD on TradingView.com

Beyond the total capacity of the public network

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

“The volume of payments in the wallet has increased over the last year much more than the most frequently reported growth metric, the total capacity of the channel. The volume of payments in the Wallet increased by 20% per month from the beginning of 2021 to the end of August, while the equivalent figure for public channel capacity was 10%. In September, the gap widened further, with payments almost doubling compared to a 26% increase in public channel capacity.

So, as all these statistics and analyzes show, Lightning Network is parabolic. And the show is just beginning.