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Bitcoin Lightning Network Growth Accelerates With New Capacity High
The Bitcoin Lightning Network, the leading layer-2 scaling solution for Bitcoin, has reached a new all-time high in network capacity, signaling renewed momentum after a prolonged period of decline. The milestone comes amid growing participation from major crypto companies and notable improvements to Lightning-based infrastructure.
Lightning Network Capacity Breaks Records
According to data from Bitcoin Visuals, Lightning Network capacity climbed to 5,606 BTC on Monday, surpassing its previous peak recorded in March 2023. Separately, analytics platform Amboss reported a slightly higher capacity figure of 5,637 BTC on Tuesday, valued at approximately $490 million.
The data shows a sharp rise in capacity during November and December, reversing a year-long downward trend. More Bitcoin has been added to the network, enabling faster and cheaper transactions, which are central to Lightning’s value proposition.
Usage Metrics Tell a Different Story
While capacity has surged, other usage indicators remain below historical highs. The number of Lightning Network nodes currently stands at 14,940, down from a peak of 20,700 in March 2022. Similarly, the number of payment channels has fallen to 48,678, also below its 2022 high.
This suggests that although more Bitcoin is being committed to the network, it is not yet matched by a proportional increase in active nodes or channels.
Major Companies Add Bitcoin to Lightning
Amboss noted that the recent capacity growth is not driven by a single entity. Instead, multiple companies are increasing their Lightning exposure. Major crypto exchanges, including Binance and OKX, have reportedly deposited more BTC onto the Lightning Network this month.
In parallel, Tether announced that it led an $8 million investment round in Bitcoin startup Speed, aimed at enabling stablecoin payments on the Lightning Network.
Meanwhile, crypto wallet MetaMask introduced Bitcoin support this week, although it clarified that transactions would use Native SegWit rather than Lightning.
Taproot Assets Upgrade Expands Lightning’s Potential
Lightning Labs also announced a significant upgrade to Taproot Assets, releasing version v0.7. The update introduces reusable addresses, a fully auditable asset supply, and support for larger, more reliable transactions.
Taproot Assets enables assets such as stablecoins to be issued on Bitcoin and transferred over the Lightning Network, combining Bitcoin’s security with instant, low-fee payments. According to Lightning Labs, the new transparency features could help transform Bitcoin and Lightning into a multi-asset network, laying the groundwork for massive value flows across the ecosystem.
