After a surge in adoption, the node count of Bitcoin’s top layer-two solution, Lightning Network (LN), has risen to new records.
Glassnode’s September 27 Week on-Chain Report shows that the number of Lightning Network nodes grew by 160% in September, resulting in a record 15,600-strong network. Only 6,000 LN nodes had been activated by August’s end.
According to the report, 73,000 channels (or connections between nodes) have reached a peak on the LN, which is an average of 4.6 channels per network. As of September 26, Bitcoinvisuals reports an average of 9.3 channels per Node.
“This is about twice the number of channels that were online during the period 2019-20. The majority of the growth occurred since May 2021.”
According to Glassnode, the total Lightning Network’s capacity has experienced “explosive growth” in this year. This metric is the amount of BTC that can easily be transferred via the LN.
At current prices, the network’s total capacity is 2,904 BTC (or $1123 million). This milestone represents a 170% increase in network capacity since January, with approximately 22% or 514 BTC being added to the network just in September.
Current channel capacity, or the amount of BTC sent per channel is 0.04 BTC, which is an all-time record for the network. This represents a 43% increase over the channel average of 0.028 BTC in 2019 and 2020.
Related:OKEx will accelerate Bitcoin transactions using Lightning Network
The Lightning Network was recently in the news due to Twitter’s integration of LN for tipping and its national roll-out in El Salvador, amid the country’s digital assets embrace.
Two researchers, Thaddeus dryja and Joseph poon, proposed the Lightning Network in 2015. It was a way to move Bitcoin transactions off-chain to increase throughput, and reduce costs.