Despite the Bitcoin Lightning Network’s growing popularity, with over 328 million users, only a small fraction of crypto exchanges have adopted this technology. The Lightning Network’s adoption journey faces challenges but holds potential for broader acceptance in the crypto industry.
A recent report by leading Bitcoin infrastructure company Kaminari suggests that the Lightning Network’s user base could significantly expand by 2024. Major exchanges like Binance and OKX adopting the technology have contributed to its accessibility and awareness.
Despite adoption by major exchanges, market data reveals that only 14 out of 224 active centralized crypto exchanges have integrated the Lightning Network. Kaminari analysts confirmed that currently, only 6% of crypto exchanges use the Lightning Network for Bitcoin transactions.
The slow adoption rate raises questions about the network’s scalability and user-friendliness, especially for individual users. Technical complexities and high fees during peak times on the Lightning Network side have generally limited its use to storage purposes.
Kaminari analysts noted that out of over 350 wallets analyzed, only 30 have integrated Lightning, with just two popular wallets among the top 10 by user numbers adopting it, indicating a significant area for growth through wider wallet integration. The Bitcoin blockchain continues to show strong growth, with record transaction numbers in 2023, highlighting the potential for increased adoption and integration of cryptocurrencies.