By Shelly Melancon (Switzerland)
Popular Layer 2 scaling solution Lightning Network has hit a huge milestone after recording over 2.7k BTC in transactions. The scaling solution provider has been having an uptick of late, with the latest news proof businesses are utilizing the scaling solution tremendously.
According to Glassnode, the network attained an All-time-high capacity of 2,738 BTC, equal to $116.3M. Will Clement, a popular market analyst, opined that with LN reaching 2.7k BTC, enthusiasts and critics will not see BTC as just a store of value but a medium of exchange. He emphasized that the growth is paramount to BTC’s price that has been fluctuating since early September.
Lightning Network Offers Cheaper and Speedy Transactions
Businesses and payment channels opt for the Lightning Network for efficiency, transaction speed, and affordable fees. LN is an L2 layer scaling solution that undertakes off-chain transactions. The network, integrated into the Bitcoin blockchain, is deployed to undertake transactions more effectively. Compared to L1 scaling solutions, LN is more accessible.
In the meantime, Bitcoin addresses with above 0.1 BTC hit 3,243, a 4-month high. Hoarding coins is one excellent strategy that investors use to influence the price of BTC by storing their cryptos. Investors use this strategy to determine future prices and supply, and not for speculative purposes. Some of the famous holders are Bitcoin Whales, who added about 31K BTC to their portfolios.
BTC Holders Plans to Hoard BTC to Spark a New Price
BTC supply has been gradually shifting to long-term holders. Over two million BTC have moved from short-term holders to old hoarders since BTC reached $64K in mid-April. Recent data from Glassnode indicates that BTC supply, which has been dormant for over a year, is about to bottom out. It implies that long-term holders plan to accumulate BTC to ignite a run of new high prices, making the overall supply chain squeeze out. When demand increases, the price also increases, and holders could begin selling again.
Such a similar step influenced the run of BTC price in April 2017, where it hit an all-time high of $20K and April 2021 when the price hit $64K. With supply creating a local bottom at 54%, a significant portion of BTC will remain in cold storage, but the long game is to drive BTC’s price beyond its current level.
Meanwhile, BTC’s open interest has declined below $11B. The last time it went below this figure was in August. Typically, open interests rise when BTC price increases, hence prove that price and rates are intertwined.
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