The Bitcoin Lightning Network — the layer-2 system built to enable faster, cheaper BTC payments — just hit a fresh all-time capacity high as exchanges and protocol upgrades pour more bitcoin into channels. According to Bitcoin Visuals, LN capacity climbed to 5,606 BTC on Monday, eclipsing the previous peak set in March 2023. LN analytics provider Amboss reported a similar high of 5,637 BTC on Tuesday, roughly $490 million at current rates. The lift in capacity follows a notable surge in November and December after a year of declines, signaling renewed inflows of BTC onto the network. That inflow, however, appears concentrated. Amboss noted, “It’s not just one company that’s putting more Bitcoin into the Lightning Network; it’s across the board,” and pointed to large exchanges — including Binance and OKX — as key contributors to this month’s bump. In other words, more bitcoin is being locked into Lightning channels, but that hasn’t translated into more nodes or a greater number of channels network-wide. Current stats show about 14,940 Lightning nodes and 48,678 channels, both down from their March 2022 peaks of roughly 20,700 nodes and a higher channel count. This divergence suggests the network is growing in capacity (bigger channels and more custodial liquidity) even as decentralization and channel counts have not recovered to earlier highs. The capacity surge arrives alongside meaningful ecosystem moves that could broaden Lightning’s use cases. Stablecoin issuer Tether led an $8 million investment in Bitcoin startup Speed to push stablecoin payments over Lightning, a step that would marry fiat-pegged liquidity with Bitcoin’s fast, low-fee rails. Separately, wallet giant MetaMask added Bitcoin support this week — though it clarified that its transactions will use Native SegWit and not Lightning, at least for now. On the protocol side, Lightning Labs released Taproot Assets v0.7. The upgrade brings reusable addresses, a fully auditable asset supply, and support for larger, more reliable transactions. Taproot Assets is a multi-asset protocol that allows assets — including stablecoins — to be minted on Bitcoin and moved over Lightning. Lightning Labs argues these features could let stablecoins leverage Bitcoin’s security while retaining the instant, low-fee settlement Lightning provides, potentially positioning Bitcoin and Lightning as a multi-asset network with transparent supply mechanics. Bottom line: Lightning’s raw capacity is at new highs, driven largely by major custodians and exchanges and reinforced by infrastructure upgrades and growing interest in stablecoins on the network. The challenge now is turning that parked liquidity into broader, decentralized usage across more nodes and channels. Read more AI-generated news on: undefined/news

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