Adoption of Bitcoin’s layer 2 protocol is growing, improving transaction speed and costs.
On April 28, Coinbase revealed that 15% of its Bitcoin transaction volume is processed through the Lightning Network. In a statement shared with The Block, the exchange highlighted the acceleration in the adoption of Bitcoin’s layer 2 protocol.
The Lightning Network integration on Coinbase took place in April 2024. Michael Rihani, Director of Product at Coinbase, commented:
“Integrating the Lightning Network was a key milestone in supporting the Bitcoin ecosystem and making payments faster, cheaper, and more useful for everyone.”
“Within a year, 15% of our Bitcoin transactions utilizing Lightning demonstrates its real-world utility. We’re quickly proving that Bitcoin is a powerful tool for global payments with Lightspark.” Rihani added.
Lightspark, a company focused on global payment infrastructure built on the Lightning Network, develops SDKs (Software Development Kits) and other tools to help developers connect to the Lightning Network and accelerate its adoption.
The Lightning Network makes Bitcoin transactions faster and cheaper for everyday use, overcoming some of the limitations of Bitcoin’s timechain.
In addition to improving transactions through LN, the exchange also announced the launch of the “Coinbase Bitcoin Yield Fund” on May 1st — a financial product targeting annual returns between 4% and 8%.
