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Bitcoin Lightning Network Capacity fees via 4,000 BTC

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There’s trigger for celebration from the world’s largest cryptocurrency. The Lightning Network hit the 4,000 Bitcoin (BTC) public capability milestone, that means $120 million in worth is prepared for peer-to-peer funds.

The Lightning Network first broke the 1,000 BTC barrier in August 2020 and the two,000 BTC barrier in July 2021. The capability has doubled within the house of 18 months.

Lightning Network capability development since January 2022. Source: Glassnode.

CoinCorner CEO Daniel Scott instructed Cointelegraph that “we had slow and steady growth with Lightning capacity to begin, but since Jan 2021 the uptick has been strong.”

Danny Brewster, CEO of United Kingdom-based Bitcoin alternate Fast Bitcoins instructed Cointelegraph that Lightning Network capability “likely passed 4k a long time ago with private channel metrics not being publicly available.”

“With that being said, the constant growth has been a great start for the Lightning Network and I foresee it continuing into the future, as long as all stakeholders, from developers to entrepreneurs building businesses continue to push forward.”

A layer-2 fee protocol constructed on Bitcoin’s base layer, the Lightning Network permits for near-instant transaction finality. In the next video, Paco de la India — a Bitcoin-powered world traveler — buys a pair of shorts from Mozambique-based Bitcoiner Jorge, utilizing the Lightning Network:

Lead on-chain analyst for Glassnode, James Check, instructed Cointelegraph, “The expansion of Bitcoin’s Lightning Network appears to be transitioning out of the ‘reckless’ phase, and into proper experimentation by early adopters.”

Related: The Lightning Network Lunch: A Bitcoin contactless fee story

“As wallet designs and user experience improve, more kinks can be worked out, and the network will mature. The persistent growth of public Lightning capacity and channel count is a reflection of this vote of growing confidence and growing utilization,” he mentioned.

Scott agreed, sharing that the constructive pattern is prone to proceed “as more companies adopt Lightning and we see more use cases come to fruition.”

“The influence of El Salvador adopting Bitcoin seems to have been an inflection point for Lightning, giving it confidence and proving a real-world use case.”

According to information from 1ML, the typical and median transaction value for sending Satoshis (the smallest denomination of a Bitcoin) over the Lightning is effectively beneath $0.01, proving it packs a punch as fee expertise. 

Brewster concludes, it’s an “awesome start but a long way to go. It really is still early!”