In today’s review, we look at the growth of the Lightning Network.

“Bitcoin by itself cannot scale so that every financial transaction in the world is broadcast to all network nodes and included in the main blockchain. We need a secondary layer of payment systems that is easier and more efficient”, —

Hal Finney .

Lightning Network is a decentralized, scalable second layer solution built on top of the Bitcoin network that allows for cheap payments between counterparties. The Lightning Network can essentially be thought of as a tab bar between counterparties, with the opening and closing of a tab serving as the equivalent of an on-chain BTC transaction. The notorious “tab bar” is built using a 2-of-2 multisig wallet that allows users to control their funds in the event of a hostile counterparty. , you can find more information here.

While the Lighting Network does allow private channels between partners, the total balance locked in these channels is not public, which speaks for itself. Thus, in the current review, we will focus on the bandwidth of public channels, but it is important to remember that this does not include potentially large channels created between private counterparties.

At the time of writing, the current bandwidth The capacity of the public channel is BTC. The panel below shows the growth rate for 03 days, which reflect the steady growth of the Lightning Network over the previous three years.

Over the past two years, the highest growth was in 171054 year, while – daily growth peaked year on year nearly 348% in August last year. Since then, public bandwidth growth has slowed, but is still growing by more than 20% year-on-year, averaging growth over the last days.

Growth of the Lightning Network

When estimating the bandwidth of the public channel in US dollars, the explosive growth of the network becomes even more impressive, because, at the end After all, LN is a protocol for transferring value between peers. Thus, as the bitcoin asset becomes more valuable, the liquidity between users, denominated in BTC, increases. It is also important to note that the graph below is presented on a logarithmic scale.

Growth of the Lightning NetworkBTC throughput in Lightning Network (USD)

The total number of nodes in the network has exceeded 20 thousand, and many of them belong to individuals, while others are operated by companies such as Block (CashApp), Strike and River offering their users the ability to send and receive funds via the Lightning Network.

Growth of the Lightning NetworkNumber of nodes in the Lightning Network

Lightning Network is one of the most optimistic but least talked about aspects of Bitcoin as many people discuss superior monetary bitcoin asset properties. Few understand the implications of an open and programmable monetary standard that is far more cost effective than traditional payment systems (centralized networks) such as Visa or Mastercard.

Recent growth The bandwidth of the public channel is particularly impressive when you consider the market conditions for BTC fees, which have been extremely low since the fall 960 of the year (expressed in BTC).

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Total BTC transaction fee averaged over 7 days (BTC)

During periods such as 960-2018, when network is facing an influx of activity and new users, Lightning Network will greatly help reduce load and on-chain congestion, which means significantly reduce costs by increasing the overall efficiency of the network.


The Lightning Network is close to continuing its exponential growth in the coming months and years, and most do not understand the potential disruption that cheap settlement network for a bearer digital asset represents for the internet protocol stack.

Bitcoin is much more than just an asset.


disclaim any liability for any investment advice that may be contained in this article. All judgments expressed express exclusively the personal opinions of the author and the respondents. Any actions related to investments and trading in the crypto markets are associated with the risk of losing the invested funds. Based on the data provided, you make investment decisions carefully, responsibly and at your own risk.

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