The Bitcoin Lightning Network is a beacon of development in the crypto market. Regardless of its growing appeal and the remarkable rise in users– now over 328 million– just a little portion of crypto exchanges have actually embraced this innovation.
While Lightning Network’s adoption journey deals with difficulties, it has the capacity for wider approval in the crypto market.
Bitcoin Lightning Network’s Limited Adoption by Crypto Exchanges
A report from leading Bitcoin facilities business Kaminari exposes that Lightning Network’s user base will grow considerably in 2024. Significant exchanges like Binance and OKX have actually accepted this innovation, adding to its extensive availability.
Market information exposes that out of 224 active central crypto exchanges, just 14 have actually incorporated the Lightning Network.
“Cryptocurrency exchanges are the most commonly utilized applications in the crypto environment. Binance alone has 150 million users since August 2023. OKX has 50 million, likewise worth pointing out is Bitstamp, with 5 million users. [Still,] just 6% of crypto exchanges presently utilize the Lightning Network to perform deals with Bitcoin,” experts at Kaminari verified.
Bitcoin Lightning Network Adoption. Source: Kaminari
This sluggish adoption rate raises concerns about the network’s scalability and user-friendliness, especially for retail users. Regardless of its advantages in helping with immediate and affordable Bitcoin deals, the Lightning Network’s technical intricacies and high cost environment throughout peak times have actually made its usage primarily custodial.
This pattern appears in the minimal however growing variety of crypto wallets integrating Lightning Network innovation.
“Among over 350 examined wallets, just 30 (15 custodial and 14 non-custodial) have actually incorporated Lightning. Significantly, amongst the Top-10 most popular wallets by user count, just Exodus, and BitPay have actually accepted Lightning. These findings show considerable space for user base growth through broader wallet combination,” experts at Kaminari included.
The Potential Is Huge for Micro BTC Transactions With Low Fees
The Bitcoin blockchain itself continues to show robust development, with a record variety of deals tape-recorded in 2023. This strength, mirrored in the Lightning Network’s broadening node count and capability, highlights the capacity for more adoption and combination throughout the crypto market.
In the video gaming and betting sector, the Lightning Network is becoming a favored option. Its fast deal speeds and lower expenses line up with the little deposit patterns of online gambling establishment users.
Leading Cryptos Used in Gaming Bets. Source: Kaminari
The intro of stablecoins to the Bitcoin blockchain is set to reinvent the stablecoin market. The prospective migration of billions of dollars in USDT deals from Tron and Ethereum to the Lightning Network might considerably move the stablecoin sector.
“If even 5-10% of Tether deals transfer to the Lightning Network, yearly turnover might reach $257– $514 billion, according to our projections. As users of stablecoins significantly acknowledge the benefits of Lightning, these figures are anticipated to grow considerably. The intro of Tether (USDT) to the Lightning Network will be a turning point,