Bitcoin’s lightning activity has kept pace this time. Since the beginning of March, BTC’s second-tier payments protocol has seen parabolic growth in terms of activity. The amount of BTC held on the chain, for example, has increased significantly, and other factors are also on the rise.
Over the last month, it has barely missed a beat in terms of momentum.
Bitcoin Lightning speed?
The parabolic growth may be supported by the fact that between February 2020 and 2021, the growth had been only 23%. At the moment, however, the lightning network has already risen 30% since July 13. The current capacity of the network is 2308 BTC, worth more than $ 100 million at press time.
There has been a steady growth in the number of channels and nodes, with figures of 76% and 58.2%, respectively, since the beginning of the year. However, it is important to note that the statistics could be higher as it is estimated that 27.8% of ray channels are supposedly private.
Consistency for second layer payments?
Now, in the past, consistency has been an issue with lightning. Initially, in 2019, a legitimate hype was generated around the Lightning network, and a massive promotion was carried out through the Lightning Torch challenge.
However, the interest waned towards the end of 2019. During the pandemic, nobody cared about second payments with Bitcoin. Now, with the collective world beginning to adapt to the COVID-19 era, the lightning network has revived its momentum.
Certain factors have played an important role. For example, Blockstream has announced a new service called Greenlight to simplify personal use of the Lightning node. However, the announcement from El Salvador may have played the most important role in this regard.
Since its legal tender announcement, Galoy’s Lightning Strike and Bitcoin Beach Wallet-enabled wallets are among the top 15 most downloaded financial apps on Apple’s App Store. Additionally, a recent report from Coinmetrics said,
“OpenNode, a company that creates Lightning-powered payment plugins that operates the fourth-largest public node by current capacity (~ 93 BTC), announced in June that it would partner with the BigCommerce e-commerce platform to enable any of the more than 60,000 global merchants on the platform to accept bitcoin payments. “
Could this be a growing threat to another protocol?
* cough * Ethereum * cough *
Scaling has always been a problem for Bitcoin and Ethereum, and then the ETH team decided to switch to the PoS protocol. Lightning was considered a solution, but it had lost traction until recently.
However, there are few signs that BTC could consume some transactional traffic after all.
According to Arcane Research, Bitcoin tx fees have dropped a whopping 96% since April. In fact, the figure was as low as when Bitcoin was valued below $ 10,000. Right now, the transaction fee is around $ 2.5, which is very impressive considering the usual high fees.
Such a narrative falls squarely in the hands of Bitcoin because they could curb its fee problem before Ethereum has completed its PoS switch. The importance of racking up traffic during a bullish rally makes sense for the world’s largest digital asset. Bitcoin, therefore, could be climbing at the right time.
This is a machine translation of our English version.
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