The Lightning Network's value is closely tied to Bitcoin's price, as highlighted in a recent report by Amboss Technologies. CEO Jesse Shrader explained that the network's max flow, a metric denoting maximum transaction capacity, reflects this correlation. As Bitcoin prices rise, the payment infrastructure scales, allowing larger payments to perform efficiently, resembling micropayments in speed and cost-effectiveness. For instance, a channel holding 0.1 BTC can facilitate a $5,000 payment when Bitcoin is priced at $50,000, but can handle $10,000 if the price doubles. The report emphasizes that traditional metrics like node and channel count do not fully capture the Lightning Network's efficiency. With increased channel capacity, institutions may flock to the network, leading to reduced costs and smoother transactions. The Lightning Network is currently valued at over $346 million in total value locked, positioning it as the third-largest protocol on the Bitcoin network.

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