Bitcoin Lightning Network Capacity charges through 4,000 BTC

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The world’s biggest cryptocurrency has reason to celebrate. The Lightning Network hit a 4,000 bitcoin (BTC) public capacity milestone, meaning $120 million worth is ready for peer-to-peer payments.

The Lightning Network first broke the 1,000 BTC barrier in August 2020 and the 2,000 BTC barrier in July 2021. Capacity has doubled in 18 months.

Lightning Network capacity increase from January 2022. Source: Glassnode.

CoinCorner CEO Daniel Scott told Cointelegraph that “We had slow and steady growth to begin with with Lightning capability, but the uptake has been strong since January 2021.”

Danny Brewster, CEO of United Kingdom-based bitcoin exchange FastBitcoins, told Cointelegraph that the Lightning Network’s potential went to 4k “a long time ago due to private channel metrics not being publicly available.”

“That being said, the continued growth for the Lightning Network has been off to a great start and I expect this to continue in the future as long as all stakeholders, from developers to entrepreneurs to the construction business continue to grow.”

A layer-2 payment protocol built on the base layer of bitcoin, the Lightning Network allows for near-instant finalization of transactions. In the following video, Paco de la India – a bitcoin-powered world traveler – buys a pair of shorts from Mozambique-based bitcoiner George using the Lightning Network:

“Bitcoin’s Lightning Network is expanding out of the ‘reckless’ phase and transitioning into fair use by early adopters,” James Chek, principal on-chain analyst at Glassnode, told Cointelegraph.

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“As wallet design and user experience improve, more kinks can be worked on, and the network will mature. The steady increase in public power capacity and number of channels is a reflection of this vote of growing confidence and increasing usage, “They said.

Scott agreed, sharing that the positive trend is likely to continue “as more companies adopt Lightning and we see more use cases emerge.”

“The impact of El Salvador adopting bitcoin has been an inflection point for Lightning, giving it confidence and proving a real-world use case.”

According to data from 1ML, the average and average transaction cost to send Satoshi (the smallest denomination of bitcoin) on Lightning is less than $0.01, proving that it packs a punch as a payment technology.

Brewster concluded, it’s a “great start but there’s a long way to go. It’s still really early!”