Lightning Network Bitcoin Capacity Grew by a Whopping 798% & Nodes by 196% in Past Year

  • In the past three months, the Bitcoin capacity has taken a big blow
  • 100% jump in BTC price might be to blame
  • From 901 in March 2018, we have reached 1,627 nodes

Lightning Network, the second layer on the Bitcoin blockchain has seen tremendous growth since January 2018.

As per the data noted by CoinShares, in the last year, Lightning Network’s Bitcoin capacity has jumped a dramatic 798%.

On September 1st, 2019, the second layer had 836 BTC capacity amounting to 8 million USD in comparison to Sep 1, 2018’s 93 BTC (658k USD).

However, in the past three months, the Bitcoin capacity has taken a big blow.

On May 9, 2019, Lightning Network reached its peak at 1,104 BTC capacity — amounting to $6.7 million at that point.

This is a drop of 24.2% in three months.

Source: BitcoinVisuals

As the chart shows, the cumulative Bitcoin capacity across all channels on Lightning Network has decreased these past three months.

This could be because of the surge in BTC price, 100% spike in price during the same period, that drove people to take their BTC off the network, possibly to sell them and take profit.

The second layer on the Bitcoin network expands its capabilities where lightning nodes open payment channels with each other, which are funded with Bitcoin. When transactions are made across these channels, the balance is reflected without broadcasting a transaction on chain.

Unlike BTC capacity, the nodes are constantly increasing in numbers.

From 1,627 nodes in 2018 on September 1st, we have jumped to 4,831 in 2019, seeing a jump of 196%. This number was much lower at 901 in March 2018.

However, not all is good in the Lightning land.

On August 30, an Australian software programmer Rusty Russell who is Lightning network coder ,warned users that

“security issues have been found in various Lightning projects which could cause loss of funds.”

The second layer Bitcoin scalability solution is meant to enable near-free and instant BTC payments.

He urged LN nodes operators to update their software as soon as possible.

“Full details will be released in 4 weeks (2019-09-27), please upgrade well before then,” he stated.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Second Half of 3-Yr Bull Market: Ether’s Crazy Run has 90% of its Supply in Profit

This past weekend, the price of Ether went past $400 to as high as about $420, a level last seen in July 2018. This...

Teenage Mastermind Behind the Twitter Hack Owns $3.39 Million in Bitcoin (300 BTC); Bail Set At $725k

The 17-year old Twitter-hack mastermind holds over $3 million in BTC value with only $725,000 set for bail. In a bizarre moment last month, Twitter...

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm. Bitcoin...

Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum's blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance,...

Bitcoin’s Wild Weekend Reminiscent of 2017 Bull Rally, ‘Higher Highs Ahead in 2020'

This past weekend, bitcoin had a rough time as the largest cryptocurrency made its way past $12,000 to $12,112 in trading just after midnight...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today