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- The Bitcoin Lightning Network has seen a sharp decline in key metrics amid decreased usage.
- However, BTC payments continued to gain popularity following the recent approval by Trump and the state of Louisiana.
Bitcoin [BTC] has gained widespread adoption this year, with the launch of spot exchange-traded funds (ETFs) proving this. The ETFs have strengthened the use case of Bitcoin as an investment product.
However, when it comes to payments, BTC seems to lose the top spot.
The Lightning Network, a layer 2 protocol built on Bitcoin to support fast, secure, and cheap transactions, has seen a decline in usage and activity has fallen to 2021 levels.
Lightning network activity
Data from Bitcoin images showed that Lightning network capacity has fallen sharply from a record high of 5,308 BTC in July this year to 1,273 BTC.
A similar drop can also be seen in the number of nodes and channels, an indication that there are significantly fewer users on the network.
Source: Bitcoin Visuals
This drop has fueled the debate in the BTC community, with Bitcoiner Sylvain Saurel Blaming Michael Saylor, MicroStrategy’s executive chairman.
Saurel said:
“By repeating that Bitcoin as a [Means of Exchange] is a distraction, Michael J. Saylor has contributed to the growing disinterest in the Lightning Network.”
However, the negative network statistics have not dampened the hype surrounding Bitcoin as a medium of exchange.
The state of Louisiana does allowed Residents can pay for state services at BTC via the Lightning Network.
According to Louisiana State Treasurer John Fleming, this move is in line with plans to develop and embrace new technologies. Fleming stated:
“By introducing cryptocurrency as a payment option, we are not only innovating; we offer our citizens flexibility and freedom in interacting with state services.”
At the same time, Republican presidential candidate Donald Trump has become the first American president to… buy with Bitcoin.
On September 18, Trump bought cheeseburgers at a Bitcoin-themed PubKey bar in New York City using BTC.
Monthly active Bitcoin addresses are increasing
The Bitcoin network is showing signs of strength. Artemis data shows that monthly active addresses are slowly but steadily increasing despite price volatility. These addresses recently reached 10.7 million.
Source: Artemis
This is a positive indicator because it points to healthy growth of the network. However, the increase in addresses could be due to trading activity, as network usage has fallen in some sectors.
Read Bitcoin’s [BTC] Price forecast 2024–2025
CryptoSlam shows that Bitcoin is the third largest blockchain in terms of non-fungible token (NFT) sales volumes. Ethereum [ETH] And Solana [SOL].
However, NFT sales on the blockchain have fallen 46% to $55 million in the past 30 days. This decline corresponds with declining volumes in the NFT sector.