Lightning Network Statistics Fall as Bitcoin Drops
The Lightning Network is significantly dropping, as reported by the Defi Pulse on the 14th of March. Charts are indicating the total value locked (TVL) in Lightning Network, revealed an over 2-day period drop.
The figure dropped to $4.30m on the 13th of March, from $7.073m the previous day, and thus a decline of about 65% in a day. Bitcoin’s crash accelerated the most long-short liquidations on BitMEX in 16 months. Bitcoin dropped from $7200 to a low of $5675 in 15 minutes, leading to liquidations worth $702m on BitMEX.
An Academic Group and BitMEX Criticize Bitcoin
A recent publication from an academic group reveals that there are signs the LN is failing to deliver its intended purpose. The publication indicated that the network is becoming more centralized, showing high coefficients in node centralization and wealth distribution.
Similarly, a recent research paper by BitMEX questioned LN’s privacy and scalability factors. The study identified over 60000 transactions of LN’s non-cooperative channel closures taking place as of Jan 2020. BitMEX’s research team concluded that even though LN improved privacy, the blockchain monitoring services may still identify and publish non-cooperative closures and penalty transactions.
Jack Dorsey and Roy Shenfield Support LN
The LN, however, has plenty of supporters, including Jack Dorsey. Recently, Jack Dorsey’s Square Crypto startup officially launched a grant program to support Bitcoin’s Network development.
Additionally, Roy Shenfield, a co-founder of Breez, an LN-powered payment app, claims that the network only needs more time, and it is fairing well in terms of adoption.