The Bitcoin Lightning Network capacity is the total amount of Bitcoin that can be traded over the network at any given time.
Its capacity is determined by the amount of Bitcoin locked in each payment channel and the number of channels formed on the network. A payment channel’s capacity equals the total of the Bitcoin deposits made by both parties when the channel was established. The Lightning Network Capacity chart on glassnode revealed a definite rising trend over time. Another obvious thing was the fact that it peaked every year. As of this writing, the network’s capacity had increased to 5,200 and was continuously increasing.
Also, an analysis of the Net Position change showed that it has been rising since December 2022. As of the time of writing, the Net Position Change was positive and was over 159.
The increasing flow of BTC into the channels indicates that more BTC flows are likely to aid in the settlement of network transactions.
Like network capacity, the Bitcoin Lightning Network Mean Channel Capacity has grown with time. Nonetheless, the rising trend has slightly tapered out, and a very slight rise was still perceptible. At the time this article was being written, the measure was around 0.073.
It’s critical to keep in mind that the Network is still a developing technology and has a lower capacity than more widely accepted payment methods like wire transfers or credit cards.
As more users embrace it and develop payment channels, it is projected that the Lightning Network’s bandwidth will increase quickly. Nonetheless, mergers are already happening as it expands.
On March 2, the international private bank Xapo bank formally announced its partnership with Lightspark, a Lightning Network infrastructure platform. As a result, the business was able to include Lightning on its platform.