btc lightning network

Lightning Network Adoption Update - 1Q2022 (Part 2)

By davidgyoung | Alternative Investing | 26 Apr 2022


This post is a continuation of the following earlier post:

Lightning Network Adoption Update - 1Q2022

All credit goes to the great work from Arcane Research.  You can see below in Figure 6 that the largest category for Lightning payments YTD in 2022 is "Other".  Other in this case consists primarily of micro rewards.  It is very important to note that although micro rewards are a smaller portion of overall BTC and $ volume of payments, they make up over half of the overall number of transactions on Lightning in 2022 YTD.  This is huge, suggestive of people using the network more to earn and distribute micro rewards, tips, small payments for services and tasks, etc. 

 

lightning network adoption

Figure 7 shown below shows that dramatic jump in Lightning payment volume in $ comparing February of 2021 to February of 2022.  Private nodes are not captured as discussed previously, and the $ volume is rising more than the public BTC count and node count suggesting users are using the existing nodes and channels more. 

 

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Figure 8 gives us a glimpse into an actual use case for the "Other" category while shining a spotlight on micro-transactions, long perceived as one of the Holy Grails of Lightning and BTC.  BTC users love to earn Bitcoin and stack sats, so it is useful to examine some real world examples of whether or not this works and is indeed the case. 

Figure 8 analyzes Stacker.news which is somewhat of a mix between a content aggregator and reddit like message board.  Users can earn free BTC via Lightning by posting and contributing. 

lightning network use case

As depicted above, Stacker.news is demonstrating strong growth both in the number of unique visitors and the amount of satoshis spent.  Sure, the numbers are relatively small now, but this is strong growth suggesting value here and in the middle of arguably a vigorous bear market in crypto since November of 2021.  There clearly exists multiple ways in which Lightning can be a major player moving forward. 

Figure 9 below shows the growth rates for services such as Fountain where folks can listen to podcasts and tip using Lightning.  This again shows another use case where it appears as though there is demand for this service and offering and a small but emerging ecosystem is evolving before our eyes.  Zapread.com is another example of content/blogging/social where users can earn BTC via Lightning for various tasks and contributions.

 

who uses the bitcoin lightning network

 

 

 

 

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davidgyoung
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BTC since 2013. Investor. Entrepreneur. Always looking to learn and develop.


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