Bitcoin's Lightning Network Shows Remarkable 1,212% Two-Year Growth Despite Price Fall
Summary:
Bitcoin's Lightning Network has experienced a monumental growth of 1,212% over two years, reports Bitcoin-only platform River. In August, around 6.6 million transactions were routed via the network, a major leap from 503,000 transactions in August 2021. Despite Bitcoin's price drop by 44%, the transactions on the network are increasing, with gaming, social media tipping, and streaming sectors driving 27% of the growth. The network also showed a high performance, with a 99.7% success rate on River's platform, transforming Bitcoin into a more prevalent medium of exchange.
The Bitcoin-only platform, River, reports that the layer 2 Lightning Network of the Bitcoin has witnessed an astounding growth of 1,212% over a span of two years. In August, approximately 6.6 million transactions were routed via this network – a significant surge from 503,000 transactions recorded in August 2021. River's research analyst, Sam Wouters, explicated this surge, bringing attention to how the transfer of transactions incorporated more than two facilitating nodes. This notable growth occurred despite a dip in Bitcoin's value by 44% and decreased interest in internet searches.
In a public statement on October 10, specifically addressing the network's critics, Sam expressed, "The notion that the Lightning Network isn't being utilized should be dismissed quickly." The minimum possible value River could evaluate stood at 6.6 million for Lightning routed transactions. Deriving its data from a 2021 study by K33 (previously known as Arcane Research), the firm also specified an inability to assess private transactions on the network or transactions solely involving two participants.
In August 2023, the transaction volume processed on the Lightning Network was registered to be $78.2 million, indicating a 546% rise from $12.1 million, recorded the previous year in the same month. Wouters highlighted that almost 47% of Bitcoin's on-chain transactions were being processed via the Lightning Network. "Keeping an eye on this statistic will indeed be thought-provoking as it suggests Bitcoin's gradual transformation into a medium of exchange," he added.
Of note, in August 2023, the average transaction size on the Lightning network was roughly 44,700 satoshis or $11.84. The user base for the Lightning network was projected to be between 279,000 and 1.1 million active users by River in September. Gaming and social media tipping, along with the streaming sectors, contributed to 27% of transaction growth.
The Lightning Network's performance on River's platform exhibited a 99.7% success rate with a total of 308,000 transactions in August 2023. Unsuccessful transactions largely resulted from an inability to find a payment route with sufficient liquidity. For the study, River utilized a dataset of 2.5 million transactions, representing 29% of the network's total capacity and 10% of payment channels.
Published At
10/11/2023 12:32:53 AM
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