Bitcoin’s recent price performance might not encourage investors, but that has not stopped them from pushing the TVL of assets locked on the Lightning network to a new high.
Bitcoin’s lightning TVL spikes to new high
According to available data from DeFi Pulse, the total value locked of Bitcoin on the Lightning Network has tripled from the figure of last year. Per the data, over 3,400 units of BTC, which is worth approximately $1.3 billion, have been saved on the layer-two network.
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To put this in perspective, the figure stood at 1,089 BTC as of a year ago.
In simple terms, the Lightning Network (LN) allows users to carry out off-chain transactions on Bitcoin network’s layer two. LN also allows nodes to transact on its network while the final settlement is pushed to the main Bitcoin network.
This invariably has led to wider adoption of the network for daily transactions use cases of Bitcoin, like payments and investment, and has also helped to push issues of Bitcoin scalability and utility to the forefront.
Twitter, El Salvador, and others contribute to its growth
The increasing adoption of Bitcoin’s Lightning network has been pushed majorly by institutions that have enabled crypto features on their platform.
Twitter, for example, enabled Bitcoin Tips on its platform last year, allowing users to gift their favorite content creators with the flagship digital asset. This move was made with the integration of Strike on its site, thereby enabling Bitcoin transactions to be cheaper.
Another notable reason for the growth is the adoption of Bitcoin as a legal tender in El Salvador.
In this case, the Central American country’s adoption of the asset led to a partnership between Strike and the government, leading to the addition of around 15,000 new nodes into the network. This helped to increase the network capacity by nearly 50%.
Strike is a Lightning Network wallet program that allows cross-border remittances and transactions in BTC with little to no fees.
Bitcoin Lightning network’s growing popularity has also been helped by CashApp’s recent revelation that it would allow its over 30 million customers in the US and UK access to the network. This move would further push its growth and, in the long run, increase the network TVL.
BTC price rebounds
After recording a poor start to the week, available data from CryptoSlate shows that the price of Bitcoin is gradually recovering from the losses.
According to the data, Bitcoin price has risen by over 3% within the last 24 hours to $38,955, and the entire crypto market has also surged by around 5% to $1.8 trillion.
This positive price movement was achieved despite the increased political tensions in Ukraine, Russia, and Canada.
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