The Lightning network will handle at least 5% of global stablecoin transactions by 2028 thanks to the increasing popularity of Layer 2.
The development of stablecoins contributes to making the Lightning network an effective scaling tool, with stablecoin transactions on this network projected to reach billions of USD in the near future.
MAIN CONTENT
The Lightning network is expected to handle at least 5% of global stablecoin transactions by 2028.
Stablecoins are a driving force behind the popularity and expansion of the Lightning network.
Currently, stablecoins on the Lightning network are still few, but they will increase significantly in the second half of 2024.
What potentials does the Lightning network have for stablecoin transactions?
CEO Voltage Graham Krizek predicts that the Lightning network will control at least 5% of the total global stablecoin transactions within the next 4 years. This is evidence of the growth potential of Layer 2 in expanding payment capabilities.
Stablecoins have the advantage of price stability and fast payment capability, making the Lightning network the optimal choice for processing transactions at low costs and high speed. According to many financial experts, the growth of stablecoins also stimulates the expansion of the Lightning network.
Graham Krizek emphasizes that the Lightning network is not only a bridge for Bitcoin transactions but also extends to many types of stablecoins, serving billions of USD in transactions every day.
The Lightning network will be an essential platform for stablecoin transactions, making payments faster and less expensive. In the next 4 years, we expect the share of stablecoin transactions on Lightning to reach 5% globally.
Graham Krizek, CEO Voltage, 2024
What is the current status of stablecoin transactions on the Lightning network?
Currently, stablecoin transactions on the Lightning network are still very limited, almost non-existent due to the lack of strong participation from major issuers.
For example, Tether – one of the most popular stablecoins, has just begun integrating Lightning network support at the beginning of 2024. This marks an important turning point for the explosion of stablecoin transactions on this platform.
In the second half of 2024, the increase in stablecoin transactions on the Lightning network will become evident as issuers and investors gradually adopt and widely use this feature.
What are the benefits of combining stablecoins with the Lightning network?
Integrating stablecoins into the Lightning network helps optimize processing speeds and reduce transaction fees, especially in the context of increasing demand for instant and large-scale payments.
This is also a way to expand payment capabilities for stablecoins without directly relying on the main network, ensuring space for decentralized and high-volume transactions.
This integration helps maintain value stability while increasing the usability of stablecoins in daily payments and DeFi services.
Expanding stablecoin transactions on the Lightning network not only reduces the load on the main blockchain but also facilitates large-scale, low-cost payment solutions that are user-friendly.
Chief Technology Officer of the Blockchain sector, Market Report 2024
Frequently Asked Questions
What is the Lightning network and why is it important for stablecoins?
The Lightning network is a Layer 2 solution that speeds up and reduces transaction costs on the Blockchain. With stablecoins, it helps execute transactions more quickly, securely, and cost-effectively.
Why do stablecoins drive the development of the Lightning network?
Stablecoins maintain price stability, suitable for daily transactions. This makes the Lightning network an efficient scaling tool, more popular and easily applicable.
Currently, are there many stablecoin transactions on the Lightning network?
Does using the Lightning network help reduce stablecoin transaction costs?
Yes. The Lightning network significantly reduces gas fees, increases transaction speed, making it very suitable for stablecoins for fast and large-scale payments.
When is the expected time for the Lightning network to develop steadily in stablecoin transactions?
It is expected that by around 2028, the Lightning network will account for at least 5% of total global stablecoin transactions thanks to the development of Layer 2.
Source: https://tintucbitcoin.com/lightning-network-xu-ly-5-giao-dich-stablecoin/
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