bitcoin lightning network explosion

The Lightning network has grown by more than 1200% in two years!

11th October, 2023

If there is one innovation in Bitcoin that has proven itself, it is the layer 2 solution called “Lightning Network“. According to a recent investigation report published by River, the network recorded an estimated growth of 1212% in two years with more than 6 million transactions in August 2023. The previous year, this amounted to only 500,000 transactions. This is explained in particular by the appearance of numerous applications compatible with Lightning.

Remember that the Lightning network makes it possible to carry out bitcoin operations by reducing the cost and increasing the speed of transactions. This also explains why Lightning payments are particularly on the rise within the bitcoin ecosystem.

lightning network capacity!

Thus, although interest in bitcoin among the general public is less and the price of bitcoin is down compared to its ATH of November 2021, the use case for bitcoin is growing.

The Lightning Network democratizes the use of Bitcoin across the world

If in its early days, critics criticized the Lightning for not being effective because there were problems with a lack of liquidity. Today, the figures tell us that the Lightning network is becoming ever more popular with users. According to River, the Lightning Network now processes at least 47% of Bitcoin's on-chain transactions. Almost half of Bitcoin transactions take place in bitcoin and clearly demonstrates the growing adoption of Lightning.

If this data is important, it is because the Lightning network essentially makes it possible to improve and popularize bitcoin as a means of payment and not just as a savings asset. Thus, more and more businesses are using Lightning payment because it is more practical for all parties (the seller as well as the buyer) as evidenced by the explosion of Lightning payments.

Currently, we can see on the BTCMap.org map that more than 4300 merchants accept Lightning payments around the world.

BTC MAPS bitcoin trades
Source: BTCmaps.org

The gift card platform Bitrefill said that in the first quarter of 2023, the share of Lightning payments was only 7%. The River report tells us that in El Salvador, the share of Lightning payments amounts to 73%. We can see, in fact, in the documentary “Dare to dream” which retraces the journey of El Zonte village that Lightning payments are particularly used in this region.

Varied uses of bitcoin

Among the transactions carried out in bitcoin, 27% are linked to the gaming and donations and rewards sectors on social networks and on streaming sites. Many games to earn bitcoins are also gaining popularity and there are indeed more and more different applications allowing users to earn bitcoin such as the Fountain app application, the Oshi app or, the Apollo review site For example. I

The Lightning network has clearly enabled bitcoin to become more popular and make its use ever more relevant. Better yet, it always makes the cross-border payments.

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Disclaimer: This does not constitute investment advice. Always do your own research before investing.

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Passionate about Bitcoin, our editors try to democratize their knowledge through varied articles touching on different subjects.

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