Lightning Network capacity unexpectedly drops

Posted 10 June, 2019

The Lightning Network has drastically reduced its capacity in recent days, which determines the maximum amount of transactions based on it.

The network's capacity reportedly dipped by more than 50 BTC in early June, while the drop month-on-month was about 150 BTC.

In March, the capacity of the Lightning Network exceeded 1,000 BTC and has remained relatively constant since then. In terms of US dollars, the network’s capabilities continued to increase due to the rise in Bitcoin prices, but the capacity showed a decline in both USD and BTC lately.

The operator Lightning-nod Inbig(doc)com commented the reasons behind the observed situation with the decision of which was the main factor in the recent fall down.

"I closed not-used public channels initiated from my side (age >= 78 days)," he writes, adding that intends to return the withdrawn bitcois after connecting the autopilot function.

Also, the operator LNBIG(doc)com also commented on the observed decline. LNBIG currently accounts for about half of the capacity of the Lightning Network. The company admitted that only 200-300 transactions passed through all its nodes per day, sometimes reached up to 600. The maximum amount of commissions collected by it for the month was $20, while spending on opening channes exceeded $1,000.

However, it is too early to say that this technology is slackening.

Analyst Larry Chermak believes that the number of sales agents working with the Lightning Network is not yet accepted, or no one wants to spend bitcoins.

"LNBIG.com , which currently has about half of the total capacity of the Lightning Network, says that all of their nodes have a maximum of 600 transactions going through them every day. And that they earn a maximum of $20 a month."

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