<\/p>\n
Bitcoin\u2019s Layer 2 Lightning Network has witnessed a 1,212% growth in just two years.<\/p>\n
In August 2023, the network recorded approximately 6.6 million routed transactions, a substantial increase compared to the 503,000 transactions observed in August 2021, according to River\u2019s Bitcoin-only exchange data.<\/p>\n
River\u2019s research analyst, Sam Wouters, shed light on this remarkable growth in an Oct. 10 report. Despite a 44% drop in Bitcoin\u2019s price and reduced online interest, the number of routed transactions increased, leading Wouters to humorously remark on Twitter, \u201c\u2018Nobody is using Lightning\u2019 should now be a dead meme.\u201d<\/p>\n
\n\u201cNobody is using Lightning\u201d should now be a dead meme.<\/p>\n
Launching a new #Bitcoin<\/a> report from @River<\/a>: How the Lightning Network grew by 1212% in 2 years \u26a1<\/p>\n
It\u2019s time to pay attention to the incredible work of so many people in the space \ud83d\udc47 Link below in the \ud83e\uddf5 pic.twitter.com\/FuGLwGHR4R<\/a><\/p>\n
\u2014 Sam Wouters (@SDWouters) October 10, 2023<\/a><\/p>\n<\/blockquote>\n
It is crucial to note that River\u2019s reported 6.6 million Lightning routed transactions is considered a conservative lower-bound estimate. The firm acknowledged its inability to assess private Lightning transactions or those occurring between just two participants.<\/p>\n
According to a report<\/a> by River, in terms of transaction volume, Lightning processed $78.2 million in August 2023, marking a 546% increase from the $12.1 million recorded in August 2021 by K33. Lightning now handles at least 47% of Bitcoin\u2019s on-chain transactions, signaling its growing importance as a medium of exchange.<\/p>\n
The average Lightning transaction size in August 2023 was around 44,700 satoshis or $11.84. River estimated that 279,000 and 1.1 million Lightning users were active in September. A significant portion of transaction growth, approximately 27%, was attributed to gaming, social media tipping, and streaming.<\/p>\n
High Success Rate and Future Implications<\/h2>\n
River also reported a 99.7% success rate for Lightning payments<\/a> on its platform in August 2023 across 308,000 transactions. Payment route liquidity limitations were identified as the primary cause of transactions.<\/p>\n
River\u2019s dataset comprised 2.5 million transactions, with the nodes in this dataset accounting for 29% of the network\u2019s total capacity and 10% of its payment channels.<\/p>\n
The continued expansion<\/a> of the Lightning Network, coupled with its impressive transaction volumes, raises questions about Bitcoin\u2019s future as a medium of exchange.<\/p>\n
Lightning\u2019s outperformance compared to on-chain Bitcoin transactions in terms of velocity suggests that Bitcoin\u2019s transformation into a widely accepted medium of exchange is well underway.<\/p>\n
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