Magma liquidity increased by more than 10 BTC in a month.
Payment channel sellers on Magma have received a total of more than 3.5 million satoshis.
Magma, the Bitcoin Lightning Network (LN) payment channel marketplace managed by Amboss Technology, has grown from around 40 payment channels open on its platform after its launch to having 345 LN channels available today.
The increase in the number of payment channels offered in Magma is 600%. This figure also impacts the liquidity of said market, which It went from 2.81 BTC in its beginnings, to 14.54 BTC today; that is, five times more liquidity.
The importance in the existence of this type of market is that they facilitate access to the use of payment channels of the Bitcoin Lightning network. The main stakeholders in being clients of these markets are LN users who want to have more liquid payment channels, but who do not have the necessary amount of BTC to fund their own channel(s).
As the just-quoted tweet mentions, LN pay channel sellers on Magma have received more than 3.5 million satoshis in total as payment for their services. Converted to fiat currency, that amount equates to about $953 according to current BTC prices in the foreign exchange market.
Certainly, the total sum of money distributed among all those who have sold some payment channel in Magma it’s not much. However, this also implies that the cost of acquiring a payment channel in this market is minimal.
CriptoNoticias reached out to Amboss Technology to get their perspective on the rapid growth Magma has seen this month. Unfortunately, as of the time of publication of this article, there was no response.
Magma has its competing markets, including Lightning Pool, developed by Lightning Labs, and Lightning Ads, which belongs to Blockstream. Both platforms, like Magma, function as liquidity pools, which is another name that can be given to a marketplace of Bitcoin Lightning network payment channels.
The LN payment channel trading platforms developed by Blockstream and Lightning Labs have some advantages over Magma, such as greater privacy for their users and the fact that they do not require a commission to use this tool.
Nevertheless, Magma’s advantage over its competitors is its user interface, which greatly simplifies its use. In addition, it provides access to information such as that discussed in this article. While in other cases everything is handled through lines of programming code.
The Advancement of the Bitcoin Lightning Network
A recent CriptoNoticias article reported that the number of monthly transactions made via Lightning has grown by 410% compared to 2021 figures. According to data provided by the firm Arcane Research, LN went from processing 100,000 monthly payments at the beginning of last year, 500,000 monthly transactions currently.