The Lightning Network adoption at exchanges is surging and it is great for bitcoin but let’s read why in today’s latest Bitcoin news.
Since Paxful launched Lightning a year ago, their weekly volume of deposits has increased by three times. There’s a growing demand for BTC-based micropayments but people are reluctant to spend the asset which trended upwards in value over time. It could look like the Lightning Network is a classic example of vaporware and it was long touted as the layer-two solution which will make BTC more viable as an everyday medium of exchange but the fact remains that BTC is still isn’t used on the large scale for payments.
In the steady stream of crypto exchanges were integrating into the Lightning Network in the recent months like Kraken, Aax, Paxful, Robinhood, and OKX which follows earlier integrations by the likes of Bitstamp, CoinCorner, and Bitfinex but also integrations by wallet payment providers like BitPay and Cash App. As impressive as this list of integrations looks, how actually beneficial has the LN been for exchanges?
According to one exchange, growth in LN use has been ticking upward for a while, and even if the status of BTC as a digital gold continues to impose the limits on the wider employment. The Lightning Network was growing over the past few months as indicated by different network metrics. The Lightning Network adoption at exchanges seems to be increasing and the nodes running on the LN protocol reached over 20,000 from the start of February and stood at 9000 a year previously which is basically equal to the active BTC nods with reachable BTC nodes that are standing at over 15,000.
The amount of BTC being held by the LN is growing with the network now hosting about 3,634 BTC up from the 1204 BTC a year ago. Given that about 19 million coins have been in, the quantity is hardly substantial the rise testifies to the growing LN involvement from exchanges and other crypto service providers. This includes Paxful as the Peer to peer exchange that integrated with the LN and the exchange wrote that the new integration enables users to transfer BTC in a matter of seconds with lower fees. According to Paxful:
“Since we launched Lightning last fall, our weekly volume of deposits has increased 3x. Bitcoin deposits and withdrawals still make up the lion’s share, but there’s no denying Lightning’s continued growth on our platform.”
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