Crypto markets have had a rough ride stuck within a wide trading range for the last few months, and many people seeking rapid fire quick gains with little effort are crying and demanding answers. Interestingly enough, during this time we are witnessing a surge to new all time highs for the amount of Bitcoin locked in the Lightning Network. To wit, the data on display courtesy of DeFi Pulse:
Here are a few of our recent publications on this platform:
What Do People Actually Use The Lightning Network For?
Time To Substantially Add To Tezos Position
$20M Per Bitcoin - The Perfect Collateral
The Fed Wants Bitcoin Ready To Help Cushion Popped Bubbles
So - smooth sailing from here and we can all earn free Bitcoin with no obstacles? Perhaps, but there are intermediate term challenges to overcome. Some astute observers and analysts have chimed in previously about liquidity, and that has jumped to the forefront recently as well. There is reason to pay attention to the fact that Lightning is not running perfectly yet due to lack of liquidity. It's not a lack of liquidity volume (check the growth above) but rather the efficient deployment of liquidity to optimize performance. Not insurmountable by any means, but something to keep an eye on for sure.
