As the price of BTC reached an all-time high, the capacity of the Bitcoin Lightning network increased dramatically. This will lead to the growth of cryptocurrency adoption.
The steady growth of the Bitcoin Lightning network continues to accelerate. This happens while the cryptocurrency market is still hibernating. According to data from the Glassnode platform on July 22, the total capacity of the Lightning network in public channels reached 4,290 bitcoins. This is a 34.6% increase after Bitcoin (BTC) hit a record high in November last year, or 1,102 bitcoins.
Read more: The future and prediction of Bitcoin price in 2022
The rapid growth of the capacity of the Bitcoin Lightning network
The growth of the Bitcoin Lightning network capacity will increase the reliability and utility of the BTC network. This will also lead to the maturity of the network. Latining Network is a scalable layer 2 solution designed to increase the speed and reduce the price of BTC transactions. Events such as the acceptance of Bitcoin in El Salvador have greatly contributed to the development of the BTC network. This news showed users an example of the practical use of the largest cryptocurrency in the market.
Increasing the capacity of the Bitcoin Lightning network will also lead to an increase in the daily applications of this cryptocurrency, such as payments and investment opportunities. The more companies accept Bitcoin as their payment method, the more popular the cryptocurrency’s Lightning network will become. Potential developments are expected to propel Bitcoin into the mainstream as the cryptocurrency continues to function as a store of value.
According to the latest research from the Federal Reserve Bank of Cleveland, the effects of the Lightning Network have become more prominent in recent months. FED officials added in this regard:
We found a significant correlation between the adoption of the Bitcoin Lightning network and the decrease in blockchain density. These connections show that Lightning has helped to improve the efficiency of Bitcoin as a means of payment. This improvement cannot be explained by other factors such as changes in demand or SegWit adoption.
Changes in the capacity of the Bitcoin Lightning network, despite the poor condition of the BTC price, indicate the continued growth and development of digital currencies. It is noteworthy that since the last price record, digital gold has experienced more than 70% correction. Bitcoin is currently trying to hold the $20,000 area, which is considered a very important support.
Bitcoin has given a small profit to its investors in its recent upward movement. The largest cryptocurrency in the cryptocurrency market rose 1 percent to $23,160 in the last 24 hours.
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Source: finbold