Nexo

Start Earning Up to 16% Interest Automatically

Learn More
Home » Technology » Lightning Network’s Bitcoin Capacity Tripled in 2021

Lightning Network's Bitcoin Capacity Tripled in 2021

by

The second-layer network has grown significantly in Bitcoin capacity over the course of the year.

Lightning Network's Bitcoin Capacity Tripled in 2021
Shutterstock photo by Mihai Simonia

Key Takeaways

  • The Lightning Network's total Bitcoin capacity has nearly tripled over the course of this year.
  • Payment channels on the Lightning Network hold 3174 BTC today as opposed to 1060 BTC in January 2021.
  • The Lightning Network’s growth coincides with a surge in demand for quick and inexpensive Bitcoin payments.

Share this article

The Lightning Network registered explosive growth in 2021, as its capacity nearly tripled over the course of this year.

Lightning Explodes in Bitcoin Capacity

The Lightning Network has experienced dramatic growth this year, as the network’s capacity (ie. the amount of Bitcoin locked in payment channels) has risen significantly.

Payment channel capacity has roughly tripled, according to data provided by crypto analytics provider Glassnode. Currently, Lightning has over 3174 BTC capacity, up from 1060 BTC on January 1, 2021. 

The same insights from the firm also show that during the year, the total number of Lightning payment channels more than doubled, rising from roughly 37,000 to just over 80,000.

Bitcoin Lightning Network
Source: Glassnode

Service Grows in Popularity

The Lightning Network mitigates issues seen on the Bitcoin mainnet such as slow transaction speeds and high fees. Its growth has coincided with all-time high prices as well as a string of catalysts that fueled the demand for quick Bitcoin payments. 

After adopting Bitcoin as legal tender, El Salvador integrated Bitcoin payments using Strike, a payments service based on Lightning.

Furthermore, one of the largest social media platforms, Twitter, also adopted Lightning to enable Bitcoin tips. This occurred under the leadership of its former CEO, Jack Dorsey, a vocal Bitcoin proponent.

On Monday, Dorsey’s unrelated Spiral project presented the Lightning Developer Kit (LDK) in a YouTube video. The LDK aims to overcome issues that make it difficult for developers to add Lightning capabilities to web and mobile applications.

Today, Bitwage announced the world’s first salary payments paid in Bitcoin through the Lightning Network.

Disclosure: At the time of writing, the author of this piece owned ETH and other cryptocurrencies.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.