Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin’s layer 2 Lightning Network has experienced an estimated growth of 1,212% over the past two years, with approximately 6.6 million routed transactions recorded in August, a notable increase from the 503,000 transactions in August 2021, as reported by the Bitcoin (BTC)-only exchange River.
In a report dated Oct. 10, River research analyst Sam Wouters clarified that the rise in routed transactions—those utilizing more than two nodes for a transfer—occurred despite a 44% decline in Bitcoin’s price and significantly reduced online search interest.
“‘Nobody is using Lightning’ should now be a dead meme,” Wouters remarked in a follow-up post on X (Twitter) on Oct. 10, addressing critics of the Lightning Network.
“Nobody is using Lightning” should now be a dead meme.
Launching a new #Bitcoin report from @River: How the Lightning Network grew by 1212% in 2 years ⚡
It’s time to pay attention to the incredible work of so many people in the space Link below in the pic.twitter.com/FuGLwGHR4R— Sam Wouters (@SDWouters) October 10, 2023
River’s figure of 6.6 million for Lightning routed transactions is a lower-bound estimate—the minimum value it could determine. The firm also derived the August 2021 figure of 503,000 from a study conducted by K33, previously known as Arcane Research, and noted that it could not evaluate private Lightning transactions or those involving only two participants.
Estimated growth of monthly routed Bitcoin Lightning transactions. Source: River
In August 2023, the transaction volume processed on Lightning reached $78.2 million, reflecting a 546% increase from the $12.1 million figure recorded in August 2021, as sourced by K33. Wouters highlighted that Lightning is now handling at least 47% of Bitcoin’s on-chain transactions.
Related Posts
“This will be an interesting metric to monitor,” he remarked. “It is an indicator of Bitcoin becoming more of a medium of exchange.”
Estimated growth of monthly routed Bitcoin Lightning transaction volume. Source: River
In August 2023, the average size of a Lightning transaction was approximately 44,700 satoshis or $11.84. River estimated that between 279,000 and 1.1 million Lightning users were active in September.
The firm attributed 27% of the transaction growth to the gaming, social media tipping, and streaming sectors.
Related: Coinbase to integrate Bitcoin Lightning Network: CEO Brian Armstrong
River reported a Lightning payments success rate of 99.7% on its platform in August 2023 across 308,000 transactions. The primary reason for failures occurs when a payment route cannot be located that has sufficient liquidity to complete the transfer.
River’s dataset comprised 2.5 million transactions. The nodes within River’s dataset account for 29% of the total capacity on the network and 10% of payment channels.
Magazine: 6 Questions for Kei Oda: From Goldman Sachs to cryptocurrency
