Arcane Research, a leading on-chain analytics firm published a detailed report chronicling the recent metrics around the network. The State of Lightning Volume 2 covered the reasons behind the surge in adoption of the Layer 2 payment solution.
Over the last 12 months, the unique channels on the platform have gone up 100% to over 88,000 while the capacity sits at 3,621 bitcoins (BTC). Metrics like the connectivity measure and channel per node have also experienced similar surges.
According to Arcane Research, implementation of the Lightning Network is driving growth. BlueWallet, Zebedee, and Reez are among the growing number of digital wallets leveraging the Lightning Network technology.
El Salvador’s Chivo wallet has successfully adopted the network, while Cash App has introduced it to more than 80 million users.
Bitcoin Lightning adopted by Twitter for tipping service
Strike, Bitnob and Bottlepay are banking on the technology and Twitter’s tipping service for creators also uses the network.
The report noted an increase in gift cards and voucher services like Bitrefill using the Lightning Network while gaming platforms use the solution to offer rewards to gamers. Thndr Games is paying out massive amounts in micropayments to players using its platform.
While Arcane Research has interesting predictions for the future of the network it notes there is still much ground to be conquered given the difference in volume with traditional networks like Visa.
The research team believes hyperbitcoinization is not required for the widespread usage of the network. “Through infrastructure providers facilitating seamless and low-cost conversion between fiat currencies and bitcoin, the Lightning Network can be used as a superior payment rail even without people knowing or caring that they use bitcoin on the Lightning Network,” says the report.