Bitcoin’s Lightning Network, once at the pinnacle of the crypto revolution, seems to have lost its spark. Once considered the future of fast, low-cost payments, it’s now facing a steep decline in usage. In 2021, things were going well, but now it seems like the spark is fading. Between growing disinterest and flagging metrics, the Lightning Network is facing a host of challenges. So what happened?
Lightning Network losing momentum
The Lightning Network, this second layer solution Bitcoin, developed to speed up Bitcoin transactions and once showing meteoric rise, is experiencing a significant drop in activity. The total network capacity is dropped from a high of 5,308 BTC in July to just 1,273 BTC today.
And that's not all: the nodes and channels have also vanishedIn other words, fewer and fewer participants and therefore a less attractive network.
Some point the finger Michael Saylora strong supporter of Bitcoin, but rather reluctant to use it as a means of exchange. And yet, he rewarded viral memes via the Lightning Network in 2022.
” Repeating that Bitcoin as MoE is a distractionMichael J. Saylor contributed to the growing disinterest in the Lightning Network “, accused Sylvain Saurel.
Can we really blame just one person for this mass disaffection?
– Lightning Network capacity dropping:
- July 2023: 5,308 BTC;
- Today: 1,273 BTC;
- Fewer nodes, fewer channels, fewer users.
Bitcoin continues to seduce despite everything
However, let's not rush to write Bitcoin's funeral oration.use of BTC as a means of payment continues to find takers. Last month, Louisiana allowed its citizens to pay for some state services through the Lightning Network.
A notable step forward, according to John Fleming, State Treasurer, who sees it as a way of ” provide flexibility and freedom in interaction with public services “.
And what about Donald Trumpthe first American president to have paid for cheeseburgers with bitcoin during his visit to a bar in New York? Not bad for a supposedly moribund technology!
The Bitcoin network, despite everything, shows signs of vitality. The number ofactive addresses reached 10.7 millionaccording to Artemis, an indicator of the network's health. Even though NFT enthusiasm has faded a bit, Bitcoin remains the third-largest blockchain for NFT sales, just behind Ethereum and Solana.
In conclusion, almost a year ago, the Lightning Network's growth was at an all-time high with a growth of 1,212% in two years.
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