Lightning Network, a second-layer Bitcoin solution, is predicted to gain strong traction in stablecoin payments soon. Graham Krizek, the founder and CEO of Voltage, believes the network could handle five percent of all global stablecoin volumes by 2028.
Currently, stablecoins process around $180 billion daily, and even five percent means over $9 billion could flow through Lightning. This growth seems tied to rising adoption by both individual users and traditional institutions alike.
Krizek noted that as of right now, Lightning has very little stablecoin action, but that environment can change within months. Big players like Circle and Tether have not become integrated yet, but there are plans underway.
Tether announced in January that it would integrate Bitcoin usage of its USDT with native Lightning Network support. That was a significant move towards enabling wider transaction capability.
Similarly, Lightning Labs released Taproot Assets version 0.6 in June to accommodate decentralized exchanges of stablecoins. This enables Bitcoin to transform into a more agile and rapid settlement mechanism.
Krizek further noted rising interest from developers as well as retail users who still search for real-world applications. Such groups continuously experiment with Lightning’s efficiency for peer-to-peer digital payment applications.
Cash App handles Bitcoin with lightning
Currently, the network boasts 14,000 active nodes, 44,800 active payment channels, and approximately 3,820 BTC locked as liquidity. That liquidity represents an amount of $448 million using current Bitcoin value.
Even with a 23% decline in aggregate BTC capacity this year, value of the network in dollars has still gone up. Fewer but bigger channels now predominate, benefiting transaction Finality as well as capital efficiency in general.
Krizek pointed out that over 700 million users globally now have access to Lightning-compatible services. This includes users on exchanges, crypto wallets, neo-banks, and other payment platforms.
Companies such as Cash App have integrated Lightning as well, with 25% of Bitcoin transactions passing through it. Krizek still feels that settlement with Lightning in real-time will eventually be standard procedure with payment services utilizing Bitcoin.
Voltage, his company, works with wallet developers to enable stablecoin features on the Lightning Network. They aim to build the infrastructure needed for widespread adoption of stablecoin payments within the Bitcoin ecosystem.
