Despite the recent downtrend, Bitcoin has seen increased adoption on a larger scale. From El Salvador’s purchase of the Dip to the surge in adoption of lightning networks, the digital asset hasn’t done too badly. The most recent indication of increasing Bitcoin adoption came in the form of Bitcoin Lightning network nodes. The data shows that these lightning knots have seen a significant increase in the past three months.
Bitcoin Lightning Node Increase
Since its inception, the Bitcoin Lightning Network has seen slow but steady adoption. Most of the time, the need for a lightning network only became relevant in the Bull Run of 2018, when transaction fees rose significantly. It soon became important that there was a way to lower transaction fees on the Bitcoin blockchain even during peak hours, and as such, the Lightning Network was adopted.
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Since then, the number of lightning knots has grown, posting small upward sticks at various times in their history. Not as significant as the increase over the past three months, however.
From September 3 to December 3, the nodes added to the network continued to grow. A total of 3,534 nodes were added to the network during this period. During this three-month period, the total lightning network nodes broke to over 18,000, which corresponds to an increase of 23% over this period.
Number of nodes on lightning network grows 23% | Source: bitcoinvisuals.com
That growth has been synonymous with a number of launch initiatives with more users adopting the Bitcoin Lightning network as the standard way to send BTC. Most notable was the introduction of Bitcoin as legal tender in El Salvador and the citizens using the lightning network to pay for goods and services with Bitcoin.
The Lightning Network basically allows transactions to be sent off-chain, which makes it faster and cheaper than on-chain transactions, the main reason for its recent introduction.
How is the increase affecting the network?
The increase in the number of Bitcoin Lightning network nodes is positive. First of all, this allows the network to accommodate more transactions. It will allow the blockchain to scale and, as such, perform more transactions. It also means faster transaction times and lower fees for the users of the network.
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Bitcoin’s growth has attracted many investors, but more are expected to join over the years. This influx of new participants into the blockchain would lead to increased network activity and thus to slower transaction times and higher fees. As the Lightning network expands, it will be able to increase capacity to accommodate more transactions at low fees.
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In addition to El Salvador, the Twitter Tip Jar is another popular implementation of the lightning network. This feature on one of the largest social media platforms allows followers to tip their favorite content creators quickly and at low or even zero fees.
Featured image from The Block, chart from TradingView.com