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Bitcoin LN Adoption rates are below the expected numbers

Photo of: Janeth Diamond
by Janeth Diamond

Ever since Bitcoin came into being more than a decade ago, we can’t even imagine how its use cases also have evolved. With passing time, Bitcoin is earning a reputation of being a secure store of value and it has also shown how scalable it is. But Bitcoin reaching a reputation as dependable as it has right now gone on to prove that, it has many factors working for it. 

Hence to take this tradition forward, and boost Bitcoin’s stability as a payment solution, and to improvise its security features, the lightning network was posed as the go-to layered solution. But, not much result has been achieved due to its implementation. In the latest episode of the Stephen Livera podcast, Bitrefill CEO emphasized what a lighting network is for the Bitcoin network. He also elaborated on its adoption levels and also if there can be any link that can be established between the privacy features and the bad elements who are exploiting the space. He also said that he believes considering the technological ups that the industry is currently going through, lighting can be a great solution that could bring more amends to the crypto ecosystem and more importantly make it super efficient and cost-effective. He was quoted as

“We think he is the most likely candidate. For being the technology that’s that, that brings about the circular economy in the cryptocurrency world….But it’s still a niche and [if you were to] ask me a year ago, I would have definitely thought that we would have been much more further along in terms of lightning adoption than we actually are right now.”

The graph above is Bitcoin network data by Coin.Dance showcases the steady increase in Bitcoin’s daily average transaction fees. If one can observe, in the last one year the average has more than doubled from 154.3c to 325c. Sergej Kotliar, CEO of Bitrefill extended this information by talking about whether transaction fees could be a possible push or a trigger for rising lighting adoption rates. This is more so in the case of exchanges that support it given that as we discussed, Bitcoin is perceived more as a long term asset than an asset that can be traded in the volatile markets for the short or medium term. In the CEO’

“I think that high transaction fees are one such motivator. But in the lightning world, things are different and you still don’t have, enough exchanges supporting it, which I think is a big thing, given how the industry is centered around different kinds of speculative uses and the majority of traffic is happening between exchanges.”

He also pointed out that when it comes to the network’s upgrades for privacy-related features and solutions like Lightning, it is still fallen back and underestimated. It is still vulnerable to the idea that bad elements will exploit such advances exploiting loopholes. 

Source: DeFi Pulse

Considering the total value locked as the graph above, lighting shows a great picture with rising value from $4 million to $12.5 million alone in a few month’s time as per information from the DeFi pulse.