Bitcoin Lightning Network public capacity dips below 5,000 BTC
The total public capacity of Bitcoin’s Lightning Network dipped below 5,000 BTC this week and is currently hovering around 5,060. The dip is a 7% decline from one month ago and a 10% decline from the network’s high in March. Lightning is Bitcoin ’s most popular Layer 2, or off-blockchain scaling solution. To enter the Lightning Network, users deposit BTC into contracts that subsequently allow routing of BTC throughout the network without incurring on-chain fees. Lightning transactions are far faster and cheaper than regular Bitcoin transactions, yet they don’t enjoy the full decentralization and security of Bitcoin ’s blockchain. Capacity refers to the maximum amount of money that a user of the publicly accessible Lightning Network could route at any particular time. After years of growth including a sextupling of BTC capacity over the past three years, the Lightning Network has stagnated for the past nine months . In addition to lower money at stake, the number of public...