"The Lightning Network's capacity has seen a surprising drop of nearly 13% in just 30 days, a return to its December 2022 levels. However, the number of channels, the fundamental building blocks of the network, has grown by 3% in the same period. This unusual trend suggests a shift in the Bitcoin landscape. But what could be behind these conflicting trends? Is it a move towards decentralization or a sign of larger players withdrawing their Bitcoin due to market uncertainties..."
Lightning network capacity decreases while number of channels grows Lightning network capacity decreases while number of channels grows
Disconcerting trend or progress? Lightning Network sees growing channels alongside falling capacity.
2 min read
Updated: Aug. 17, 2023 at 4:00 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
