After a gradual drop in the number of nodes in the solution, Lightning Network, they seem to recover progressively.
The Lightning Network is a second-layer scalability solution for the Bitcoin network, designed to address the issue of scalability and transaction speed limitations on the Bitcoin network. The Bitcoin mainnet’s low scalability causes bottlenecks and high transaction fees during periods of high trading volume. To solve this, LN allows mainnet transactions to move to the second layer. Once there, transactions are carried out in a faster, cheaper and more efficient way.
The Lightning Network has seen significant growth since its implementation. It currently has more than 16,000 nodes and a total of 75,647 payment channels. Since 2020, the number of nodes has increased by an impressive 240%.
The total capacity of the network has exceeded 5,400 BTC, representing a more than six-fold increase since 2021. On average, nodes have a capacity of around 0.333 BTC.
After reaching a peak in April 2022, the number of Lightning Network nodes suffered a decline that lasted for a year. The drop in the number of nodes from the peak of 20,448 occurred in a staggered manner and the recovery shows the same behavior.
Lightning Network Nodes Recover
The crypto winter became a dry brake on the rise in the number of Lightning Network nodes. In early 2022, the number of nodes in that second layer peaked at 20,448. After that, there was a gradual decline.
In March 2023, there was a new, but this time the last, step drop to the range of 15,200 nodes. There the recovery also began in a phased manner that is taking the number upwards again. So far, there have been 2 stair climbs. Thus, the total number of Lightning Network nodes amounts to 18,967.
Interestingly, 48% of the nodes in that second layer are operated in cloud services. According to specialized portals, most of the nodes are in the services of technology companies Google and Amazon.
Number of Channels Also Recovered
On the other hand, the number of channels on the LN network is also increasing after the decline that began in October 2022. At that time, the number remained above 85,000 channels. However, the winter managed to twist the arm of that stability and caused a collapse that had its maximum expression in December, when it fell to 67,011 channels.
With the arrival of 2023, the recovery became notable, although with some ups and downs along the way. From 67K, the number of channels rose to more than 78K in May and is now 73,968.
All this indicates that the recovery of 2023 played in favor of stimulating the use of the LN network. Although the network represents some risks that are exposed by various portals, it remains the hope for Bitcoin to become the dreamed micro-payment network expected by the community.
Despite a time of uncertainty and low interest in the crypto market, the increase in Lightning Network nodes and channels speaks volumes about user confidence in the universe of digital currencies. With the increasing usability of Bitcoin, the LN network will become a necessity when trading.
By Audy Castaneda
