according to the materials of the site - By Cointelegraph
According to industry experts, the second-level Bitcoin scaling platform Lightning Network may face a sharp increase in the volume of stablecoins in the next couple of years, driven by the growth of retail and institutional adoption.
In an interview with Cointelegraph, Graham Krizek, founder and CEO of the Lightning Network payment system Voltage, stated that due to the growing popularity of the second-level network, it will process 5% of the global stablecoin volume by 2028.
"At least in three years, the Lightning Network will account for five percent [or more] of the stablecoin volume."
According to CoinGecko, the current daily trading volume of stablecoins is around 180 billion dollars. This means that, based on current figures, the trading volume on LN could reach 9 billion dollars. In the coming years, this figure is likely to increase as regulations such as the GENIUS Act are implemented in the US and around the world.
Krizek stated that stablecoins will accelerate the adoption of the network, as "Lightning is the best scaling tool for stablecoins," and that trading volume of stablecoins in a scalable network could amount to billions.
He acknowledged that currently the activity of stablecoins on the Lightning network is low, but that the situation may soon change.
"Stablecoins are just starting to appear in Lightning, and some of the major players, such as Tether or Circle, are not yet operational. Thus, the current percentage [of volume] is close to zero, but it will grow in the second half of this year."
This may have already begun, as the world's largest stablecoin issuer Tether announced in January the addition of Tether (USDT) to Bitcoin with native LN support.
In June, Lightning Labs released the latest version of Taproot Assets (v0.6) to make the network a "decentralized forex platform for Bitcoin-based stablecoins." Meanwhile, Tether's CEO Paolo Ardoino previously expressed concerns that the "global total state" of blockchains is not scalable, and the peer-to-peer nature of Lightning makes it the best platform for large-scale stablecoin transactions.
"The advantage of USDT on Lightning is that it's the perfect way to make large-scale transactions," he said in an April interview.
Krizek noted that the adoption of LN will be driven by retail and developers who are the "wave leaders."
"Developers are creating special cases, and retail is constantly using, testing, and exploring ways in which Lightning becomes an integral part of these new special cases."
Additionally, retail clients are demanding that businesses use Lightning, "which is why we are seeing an increase in the number of companies, such as exchanges, adding Lightning support," he said, adding that interest from institutional investors is also growing.
"Traditional institutions are also starting to explore and realize the value of Lightning and its impact on risk management, improving access to working capital, and reducing counterparty and chargeback risks, but it is still early to say," he said.
Exchanges quickly adopted LN to save costs and take advantage of much faster transactions, he said, noting that companies like Cash App are already using it, processing 25% of their payments in BTC via LN.
Any business using Bitcoin will have integration with Lightning. Instant settlements will become the standard, just like any other payment method."
According to Amboss, a provider of LN metrics for Krizek, the Lightning Network currently has 14,000 nodes, 44,800 channels, and a capacity of 3820 BTC, which is around 448 million dollars at current prices. Bitcoinvisuals publishes similar data but shows that the network's bandwidth, measured by locked BTC liquidity rather than transaction volumes on the Lightning Network, has decreased by 23% since the beginning of this year.
"We are observing a reduction in the total number of channels and the creation of larger channels, which confirms capital efficiency and a more optimized network," Krizek noted.
According to his estimates, the number of users of the Lightning Network, measured by the total number of exchange users, wallets, neobanks, and payment platforms with access, currently exceeds 700 million, which is double that of last year.
Voltage positions itself as an infrastructure provider helping wallet developers integrate stablecoin functionality into the Lightning Network.
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