Lightning Network’s USD Capacity Hits Record High
The Lightning Network, a payment protocol built on top of Bitcoin, has seen a significant increase in its US dollar capacity in the past month, jumping up by 37%.
However, during the same time period, the capacity for Bitcoin on the network has actually decreased by 5%. Currently, the Lightning Network has reached an all-time high of almost $325 million in US dollar capacity, while the bitcoin capacity sits at 4,680 and is 17% lower than its previous peak.
This surge in US dollar capacity is to be expected as Bitcoin’s price continues to rise, as previous records for the Lightning Network’s capacity coincided with Bitcoin’s price surges.
The Lightning Network’s capacity includes both US dollars and Bitcoin locked in payment channels on the Bitcoin blockchain, allowing for fast and inexpensive transactions with final settlement on the blockchain.
