Despite bear market conditions, the Bitcoin Lightning Network continues to grow. Total Lightning Network capacity has set a new record, with 4,290 Bitcoin (BTC) up 34.6% since the market peak in November, according to the data.
According to data shared by the Glassnode platform on July 22, the total capacity of the Lightning Network running on Bitcoin in public channels has reached 4,290 Bitcoin, an increase of almost 34.6% since November last year. On-chain data and analytics platform Glassnode made the following statements in a Twitter post:
“Bitcoin Lightning Network capacity in public channels continues to rise to new heights despite prevailing bear market conditions.”
The growth of the Lightning Network means successful updates that enhance the network, as well as increased trust and intensity of use in the network, even as the market goes through bad market conditions. Specifically, the Lightning Network, a layer-2 scaling solution designed to make Bitcoin transactions faster and cheaper, has significantly paved the way for real-life Bitcoin use opportunities. For example, El Salvador's adoption of Bitcoin as a legal currency provided a real use case for the platform.
The increased capacity and lower transaction fees potentially lead to an uptick in Bitcoin's day-to-day usage. The impact of the Lightning Network was highlighted in a recent study by the US-based Federal Reserve Bank of Cleveland:
“We think there is a significant correlation between Lightning Network adoption and reduced congestion on the blockchain, suggesting that Lightning Network helps improve the efficiency of Bitcoin as a means of payment. This development is driven by changes in demand or other factors such as SegWit adoption. inexplicable."
Finally, let's take a look at the latest situation of the leading cryptocurrency Bitcoin (BTC). Bitcoin is trading at $22,539 at the time of writing, according to CoinGecko data.