CEO Brian Armstrong states that Coinbase will integrate the Bitcoin Lightning Network
Brian Armstrong, CEO of Coinbase, stated that the cryptocurrency exchange would incorporate the Bitcoin Lightning network.
Coinbase CEO Brian Armstrong tweeted on April 8 that the cryptocurrency exchange would incorporate the Bitcoin Lightning network into its platform.
Armstrong made this remark in response to a tweet from Bitcoin investor Wicked, who criticized him for not having previously commented publicly on the Lightning network.
Armstrong claims that his tweets are automatically deleted after a few months, which explains why there is no record of his remarks on the scaling solution. He added that “Lightning is great” and will be “integrated” into the system.
Armstrong did not provide any additional information regarding the timing of this integration. Lightning is a layer2 network constructed on Bitcoin that assists it in addressing its scalability issues. The network provides quicker transaction speeds and lower transaction costs. Additionally, it is the most prevalent BTC L2 solution.
Several crypto stakeholders, including the founder of MicroStrategy, Michael Saylor, have responded favorably to Amrstrong’s statement.
Others expressed skepticism, remarking that Coinbase may take an eternity to complete this task. In the meantime, some advised Coinbase to move quickly with the integration because, given the current regulatory climate, the exchange may end up offering nothing but Bitcoin.
If Coinbase adopts Lightning, it will join competitors such as Kraken, Bitfinex, Bitstamp, and OKEx that already support the L2 solution.
The adoption of Bitcoin Lightning has increased consistently over the past year. According to defillama, the number of Bitcoin held in Lightning reached an all-time peak of 5,490 BTC in February but has since decreased to 5,420 BTC. This is a significant increase given that it had 3,350 BTC at the start of last year.
Not only has the network’s total value locked (TVL) increased, but so has its transaction volume. BitPay reported an 18% increase in transaction volume between 2021 and 2022. The growth in the fourth quarter of 2022 was 32% greater than in the fourth quarter of 2021.
Given that the network lacks a native token like the vast majority of protocols, experts believe that its growth thus far has been organic. A report published by Valkyrie Investment in February 2023 highlights Lightning Network’s adoption since its inception.