Routed Transactions Soar to 6.6 Million in August
Bitcoin's layer 2 Lightning Network has experienced an astounding 1,212% growth in just two years, with approximately 6.6 million routed transactions recorded in August. This represents a significant increase compared to the 503,000 transitions seen in August 2021, according to data from Bitcoin-only exchange River.
Jump in Routed Transactions Defies Price Fall and Decreased Interest
Despite a 44% drop in Bitcoin's price and a decrease in online search interest, the number of routed transactions using Lightning Network has surged. River research analyst Sam Wouters dismissed critics who claimed that "nobody is using Lightning" and emphasized the network's growing popularity.
River Provides Lower-Bound Estimate for Routed Transactions
River's estimate of 6.6 million routed transactions on Lightning Network is a lower-bound figure. The company also sourced the 503,000 transaction figure for August 2021 from a study conducted by K33. River clarified that it could not evaluate private Lightning transactions or those involving only two participants.
Transaction Volume on Lightning Network Soars to $78.2 Million
In August 2023, Lightning Network processed a whopping $78.2 million in transaction volume, marking a 546% increase from the $12.1 million recorded in August 2021. Wouters highlighted that Lightning Network now accounts for at least 47% of Bitcoin's on-chain transactions, indicating its growing use as a medium of exchange.
Average Lightning Transaction Size and Active Users
The average size of a Lightning transaction in August 2023 was approximately 44,700 satoshis or $11.84. River estimated that between 279,000 and 1.1 million active Lightning users were using the network in September.
Gaming, Social Media Tipping, and Streaming Drive Transaction Growth
According to River, the gaming, social media tipping, and streaming sectors contributed 27% to the overall growth in Lightning transactions. This highlights the network's increasing adoption in various industries.
Lightning Payments Success Rate and Challenges
River reported that the Lightning payments success rate on its platform was an impressive 99.7% in August 2023, based on 308,000 transactions. However, the main challenge arises when no payment route with sufficient liquidity can be found to facilitate the transfer.
River's Data Set and Network Representation
River's data set consisted of 2.5 million transactions. The nodes in the data set represent 29% of the total network capacity and 10% of payment channels.
