Bitcoin Lightning Surpasses $1.1 Billion Monthly, Signaling Payment Network Breakthrough?

▲ Bitcoin (BTC) ©CoinReaders

Signs have emerged that Bitcoin’s Layer 2 network is evolving beyond a simple experimental phase into a “real-world payment infrastructure.” Its monthly transaction volume has surpassed $1 billion, strengthening its presence.

According to cryptocurrency media outlet Bitcoinist on February 21 (local time), the monthly transaction volume of the Bitcoin (BTC) Lightning Network reached approximately $1.1 billion in November last year. Citing a report by River, the data showed that more than 5 million transactions were processed during that period. This indicates that, beyond simple price speculation, active fund transfers are taking place through Bitcoin’s second-layer network.

Changes in the transaction structure have also been observed. In 2023, monthly transaction counts rose to as high as 6.6 million, driven largely by experimental microtransactions in gaming and chat-based platforms. Recently, however, the average payment size has increased, with integrated services from exchanges and merchants driving network traffic. Analysts say that expanding participation from trading desks and corporations has elevated the network’s utilization to the next level.

Institutional transfers have also stood out. Secure Digital Markets executed a $1 million Lightning transfer to Kraken. The case is viewed as demonstrating that large sums can be moved quickly without waiting for on-chain confirmation. As of December, the Lightning Network’s capacity increased to 5,606 BTC. This figure represents the amount of Bitcoin locked to maintain channels, and greater liquidity reduces the likelihood of large-payment failures.

Movements somewhat detached from price trends have also been identified. Recently, Bitcoin fell below key support levels, increasing volatility, and spot trading volume slowed in certain periods. Nevertheless, Lightning transaction activity continued to grow steadily. This suggests that network usage is not necessarily tied to short-term price fluctuations.

The Lightning Network operates by opening payment channels off the main chain, enabling near-instant, low-fee transactions and recording only the net balance on-chain when the channel closes. This structure reduces the traditional wait time of over 10 minutes for confirmations. While transaction volume could increase further if artificial intelligence (AI) systems begin conducting automated microtransactions for data and computing services, improvements in software and the establishment of clear business models remain challenges. For now, the expansion of exchange support, deeper liquidity, and broader merchant adoption are expected to determine whether Lightning can leap forward as a mainstream payment network.

Disclaimer: This article is provided for investment reference purposes only, and no responsibility is assumed for investment losses based on this content. The information herein should be interpreted solely for informational purposes.