The Bitcoins Lightning Network Remarkable Growth

The Bitcoin Lightning Network has experienced remarkable growth over the past two years, with an increase of approximately 1,212% in routed transactions. In August 2023, around 6.6 million transactions were processed, a substantial rise from just 503,000 in August 2021, according to a report by River research analyst Sam Wouters. This growth is notable even amidst a 44% decline in Bitcoin’s price and decreased online interest in the cryptocurrency.

Wouters highlighted that the significant increase in routed transactions, which occur through multiple nodes, disproves the notion that “nobody is using Lightning.” The 6.6 million transactions figure is a lower-bound estimate, meaning the actual number could potentially be higher since it does not account for private transactions or those involving only two parties.

Additionally, the Lightning Network processed approximately $78.2 million in transaction volume in August 2023, marking a 546% increase from $12.1 million in August 2021. Wouters emphasized that Lightning is now handling at least 47% of Bitcoin’s on-chain transactions, suggesting a shift towards Bitcoin being utilized as a medium of exchange.

In terms of transaction size, the average Lightning transaction in August 2023 was around 44,700 satoshis, equivalent to about $11.84. It is estimated that between 279,000 and 1.1 million users were active on the Lightning Network in September. Notably, 27% of the transaction growth has been attributed to sectors like gaming, social media tipping, and streaming.

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