New milestone: over 4,000 BTC can now be sent on the Bitcoin Lightning Network

New milestone: over 4,000 BTC can now be sent on the Bitcoin Lightning Network

Key facts:
  • Both Space and Txstats agree on the increased channel capacity in Lightning.

  • The number of channels in Lightning is also on the rise, with more than 88 thousand enabled.

The growth of bitcoin (BTC) as a means of payment is an irrefutable fact. This is suggested by the numbers, which establish that there are more and more opportunities to send and receive satoshis without limitations, relying on the second layer of the network: Lightning Network.

In accordance with Amboss Spaceone of the explorers of the Bitcoin micropayment solution, the ability of the public channels of the Lightning network marked a new all-time high this week, reaching the milestone of 4,002 bitcoins.

This is notable because it means that, through Lightning, the equivalent of about $114 million can be sent at the time of writing this news. In addition, it represents an increase of just over 6% in the capacity of the channels, compared to that reported 30 days ago.

Although the figure in dollars seems short, it must be taken into account that bitcoin is recovering from a bearish streak that led it to add nine weeks in a row down, with prices ranging between USD 28 thousand and USD 30 thousand. At the close of this article, 1 BTC is trading for the order of USD 29,500according to the CriptoNoticias Price Calculator.

New milestone: over 4,000 BTC can now be sent on the Bitcoin Lightning Network
According to Amboss Space, the capacity of Lightning channels marked a new milestone: more than 4,000 BTC. Font: Amboss Space.

Another analytics firm, Txstats, validates data from Amboss Space. According to this monitor, the capacity of the Lightning network scaled up to 4,025 BTC, a figure never seen since the second layer solution hit the market.

Capacity, by definition, is the amount of bitcoins that are deposited in the smart contracts of the channels, which allows for liquidity in the Lightning network. This reflects the availability in bitcoins that users of the network have to make their payments and operations in Lightning.

The increase in capacity is accompanied by increases in other parameters of the Lightning network, like the number of enabled channels, which is also on the rise. According to Txstatsthere are 88,301 channels available in the second layer of Bitcoin, which translates as a new all-time high and more chances for payments to be made through Lightning.

400% growth in the number of transactions

The recurring increase in the capacity of the Lightning network channels occurs at a time when the number of monthly transactions on this network has doubled, up to 410% in April, since the beginning of 2021.

As reported by CriptoNoticias, the market analysis firm Arcane Research indicated that transactions have grown from 100,000 (at the beginning of last year) to just over 500,000 in the fourth month of the current year.

Furthermore, it was known that the Lightning network has grown 200% in a matter of a year, according to another analytics firm, Messari, which noted that channel capacity increased thanks to increased adoption and integrations of the technology into exchanges and other payment services.

graphic shows increase in the capacity of lightning channels for sending bitcoins
Txstats validates the information from Amboss Space and says that there is a capacity of 4,025 bitcoins in Lightning channels. Font: Txstats.

That the capacity of the Lightning network continues to increase shows that this solution is interfering more and more in the finances related to bitcoin, being a fundamental part for the perseverance of the new economy. This, with instant and cheap payments, which contribute to the nomination of BTC as the money from the internet thought by and for the people.

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