In a follow up to our recent look inside the Lightning Network, let's take a look at what people are actually doing with the Layer 2 protocol. Again, we draw on the excellent work from Arcane Research:
As noted above, the highest growth rates in the amount of USD in transactions from August to September in 2021 came from merchant payments and gift cards. This suggests, though is certainly not any type of guarantee, that people are in fact using the Lightning Network to engage in commerce - i.e. they are buying stuff with Bitcoin.
We always hated the argument and hostility connected to fights about whether Bitcoin is or is not exclusively a Store of Value. This debate is a waste of time. We know it can be more than just a SOV or hedge against inflation, and there is nothing stopping it from being a dominant Unit of Account and Medium of Exchange ultimately. The Lightning network is just getting warmed up.