Bitcoin Lightning Network Hits New Capacity Record as Exchanges Add Liquidity

Bitcoin’s Lightning Network has reached a new capacity record as major exchanges add more funds and developers roll out new tools. At the same time, an upgrade to Taproot Assets is pushing Bitcoin closer to supporting multiple asset types on its base ecosystem.

Bitcoin Lightning Capacity Rises While Node Counts Remain Below Peak

Lightning Network capacity climbed to a new all-time high this week, reflecting renewed interest from exchanges and infrastructure providers. According to Bitcoin Visuals, total capacity reached 5,606 BTC on Monday, passing a previous peak set in March 2023. Amboss, a Lightning analytics platform, reported a slightly higher figure of 5,637 BTC on Tuesday, valued at roughly $490 million.

Capacity growth picked up in November and December after a long period of decline. Data shows more Bitcoin being added to existing payment channels, allowing faster and cheaper transfers across the network. 

Despite this rise, overall network activity remains mixed. Lightning node count stood at 14,940, down from a high of about 20,700 in early 2022. Channel count followed a similar pattern, falling to 48,678 from earlier peaks.

For context, Lightning works by letting nodes open payment channels funded with Bitcoin. Transactions move across these channels without being recorded directly on Bitcoin’s base layer, with balances updated off-chain. This structure reduces fees and speeds up payments while still relying on Bitcoin’s security model.

Taproot Assets Upgrade Advances Multi-Asset Use

Recent capacity gains appear tied to growing exchange participation. Amboss noted that the increases are not coming from a single source, but from several large players adding liquidity simultaneously. Binance and OKX were cited as exchanges that deposited additional Bitcoin into Lightning channels during the month, helping drive the latest record.

Key factors behind the recent capacity increase include:

• Larger Bitcoin deposits by major exchanges.
• More funds are flowing into existing Lightning channels.
• Renewed interest after months of declining capacity.
• Focus on lowering payment costs for users.
• Infrastructure improvements supporting higher balances.

Broader ecosystem activity also points to expanding use cases. Stablecoin issuer Tether announced an $8 million investment in Bitcoin startup Speed to support stablecoin payments over the Lightning Network. Meanwhile, MetaMask added Bitcoin support, although transactions will rely on Native SegWit rather than Lightning.

On the development side, Lightning Labs released Taproot Assets v0.7, adding reusable addresses, auditable asset supply, and support for larger transactions. Taproot Assets allows assets such as stablecoins to be issued on Bitcoin and transferred through Lightning channels. 

Auditable supply features allow users to verify asset issuance without relying on trust, a step that could make Bitcoin and Lightning more attractive for asset issuance beyond BTC.

According to Lightning Labs, the recent update lays the groundwork for large-scale asset movement across Bitcoin and the network. Furthermore, it signals a broader push toward multi-asset support within the network.