Despite the ongoing bearish market, the dominant cryptocurrency, Bitcoin is getting more scalable every day. The latest data update showed that bitcoin’s layer 2 scaling solution for fast and low-cost bitcoin payments, bitcoin lightning network capacity hit a new all-time high (ATH) at about 4200 BTC†
According to data from TXStats.com, the bitcoin lightning network housed 4,281 BTC in its more than 89,000 channels, at the time of reporting. This, in turn, fueled phenomenal growth in the network’s bitcoin capacity, unlike last year when the capacity was just over 1,800 BTC.
In 2022, BTC adoption is progressing with increased scalability as the Lightning Network can process about one million per second as opposed to the BTC network which can only facilitate about seven transactions per second.
Bitcoin Lightning Network To Stabilize DeFi
Amid the rapid growth of the lighting network, Bitcoin (BTCmaximalist and MicroStrategy CEO Michael Saylor recently claimed that the BTC Lightning network can solve the ongoing turmoil in the decentralized financial (DeFi) industry.
Last month, while responding to Bloomberg’s DeFi downside coverage, Saylor argued that Bitcoin is a “sound ethical, economic and technical foundation for DeFi.” He added that the “next generation of DeFi will be built using the Lightning protocol and the BTC token”.
Saylor also referenced the NYDIG report that highlighted the efficiency of the lightning network, further enabling Lightning Finance (LiFi).
The report stated that “Like the phone, Lightning is a “network effect” technology. The more users, the better the user experience. Lightning is facilitating the development of an emerging ecosystem of Lightning-based financial products called LiFi (“Lightning Finance”). ), which leverage the security, transparency, and decentralized nature of Bitcoin.” In light of this, the Lightning network is indeed expanding, as it had 17,697 nodes, or users, at the time of reporting.