- The Bitcoin Lightning Network has seen a sharp drop in key metrics amid declined usage.
- However, BTC payments continued to gain popularity after the recent endorsement by Trump and the State of Louisiana.
Bitcoin [BTC] has received much adoption this year, with the launch of spot exchange-traded funds (ETFs) being proof of this. The ETFs have solidified Bitcoin’s use case as an investment product.
However, when it comes to payments, BTC appears to be losing the top spot.
The Lightning Network, a layer 2 protocol built on Bitcoin to support fast, secure, and low-cost transactions, has seen a decline in usage with activity falling to 2021 levels.
Lightning network activity
Data from Bitcoin Visuals showed that the Lightning Network Capacity has declined sharply from an all-time high of 5,308 BTC in July this year to 1,273 BTC.
A similar drop has also been seen in the number of nodes and channels, an indication that there are significantly fewer users on the network.
Source: Bitcoin Visuals
This drop has stirred debate in the BTC community, with Bitcoiner Sylvain Saurel blaming MicroStrategy’s Executive Chairman, Michael Saylor.
Saurel said,
“By repeating that Bitcoin as a [Means of Exchange] is a distraction, Michael J. Saylor has contributed to the growing disinterest in the Lightning Network.”
However, the negative network metrics have not dampened the hype around Bitcoin as a means of exchange.
The state of Louisiana has allowed residents to pay for state services with BTC via the Lightning Network.
According to the Louisiana State Treasurer, John Fleming, this move aligns with plans to evolve and embrace new technologies. Fleming stated,
“By introducing cryptocurrency as a payment option, we’re not just innovating; we’re providing our citizens with flexibility and freedom in interacting with state services.”
At the same time, Republican Presidential contender, Donald Trump, has become the first U.S. President to make a purchase using Bitcoin.
On the 18th of September, Trump purchased cheeseburgers at a Bitcoin-themed PubKey bar in New York City using BTC.
Bitcoin monthly active addresses increase
The Bitcoin network is showing signs of strength. Data from Artemis shows that monthly active addresses have been on a slow but steady rise despite price volatility. These addresses recently reached 10.7 million.
Source: Artemis
This is a positive indicator as it points towards the healthy growth of the network. However, the rise in addresses might have stemmed from trading activity, as network usage in some sectors has dropped.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
CryptoSlam shows that Bitcoin is the third-largest blockchain by non-fungible token (NFT) sales volumes, after Ethereum [ETH] and Solana [SOL].
However, NFT sales on the blockchain have dropped by 46% in the past 30 days to $55M. This drop aligns with declining volumes across the NFT sector.
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