With more capital and better tools, Lightning’s role in everyday crypto payments continues to expand
Bitcoin’s Lightning Network has reached a new record for total capacity, signaling renewed momentum after a long stretch of slower growth. Data from network trackers shows that more Bitcoin is now locked into Lightning payment channels than at any point before. The rise follows stronger participation from large exchanges and recent technical upgrades.
Capacity climbed past 5,600 BTC this week, topping the previous peak set in early 2023. The increase comes after steady gains through November and December, reversing a trend that saw capacity drift lower for much of the year. More Bitcoin on the network means larger volumes can move quickly with low fees.
While capacity is growing, the number of Lightning nodes and channels has not returned to earlier highs. This suggests existing players are committing more funds rather than a wave of new users joining. Analysts say that still improves the network’s ability to handle payments, even if usage growth remains uneven.
Major exchanges are playing a key role in the rebound. Platforms like Binance and OKX have added more Bitcoin to Lightning, helping drive the recent jump. At the same time, Tether backed an $8 million investment into a Bitcoin payments startup focused on bringing stablecoin transfers to Lightning.
Technology upgrades are also adding momentum. Lightning Labs rolled out an update to Taproot Assets that improves reliability and transparency for assets issued on Bitcoin. The changes allow reusable addresses, clearer tracking of asset supply, and support for larger transfers.
Developers see these tools as a step toward using Bitcoin and Lightning for more than just BTC payments. Stablecoins and other digital assets could move across the network while benefiting from Bitcoin’s security.
