Bitcoin's Lightning Network Poised to Capture 5% of Stablecoin Flows by 2028

Voltage CEO's Optimistic Projections

Voltage CEO Graham Krizek has set an ambitious target for Bitcoin's Lightning Network, predicting that it could secure 5% of the global stablecoin transaction volume by 2028. This forecast hinges on the increasing adoption of the layer-2 scaling solution in both retail and institutional sectors. While the current stablecoin activity on Lightning remains minimal, Krizek sees a promising trajectory based on ongoing trends in stablecoin regulation and infrastructure development.

Tether and Circle's Integration of Lightning Network

Key players in the stablecoin market, such as Tether and Circle, are gradually integrating Lightning Network support into their operations. Tether's announcement in January to bring USDT stablecoin to Bitcoin with native Lightning Network backing and Lightning Labs' release of Taproot Assets in June are notable steps toward establishing Lightning as a decentralized forex layer for stablecoins. Paolo Ardoino, Tether's CEO, has also endorsed Lightning's potential for handling large-scale stablecoin transactions, emphasizing its peer-to-peer architecture as a solution to blockchain scalability challenges.

Rapid Evolution of Lightning Network Infrastructure

Despite a decline in total channel numbers, Lightning Network's infrastructure is evolving rapidly, with over 14,000 nodes, 44,800 channels, and a capacity of $448 million in Bitcoin liquidity. The network's user base has surpassed 700 million, driven by both institutional and retail adoption. Retail users are advocating for faster and cheaper transactions through Lightning, while institutions are exploring its benefits for risk management and capital efficiency. The growing integration of Lightning Network could reshape the stablecoin landscape in the coming years, revolutionizing the way stablecoin flows are processed and managed.