Bitcoin News Today: Lightning Network Forecasts 5% Stablecoin Volume Capture by 2028

The Lightning Network, a second-layer payment protocol for Bitcoin, is increasingly being positioned as a catalyst for a significant shift in global digital finance. Graham Krizek, CEO of Voltage—a Lightning-based payments provider—has forecasted that the network could capture 5% of global stablecoin volume by 2028. This projection, if realized, would mark a transformative milestone for cryptocurrency, enabling faster, cheaper, and more accessible cross-border transactions while integrating stablecoins into Bitcoin’s scalable infrastructure [1].

The Lightning Network operates by creating off-chain payment channels, allowing near-instant settlements with minimal fees. While it has historically focused on Bitcoin transactions, recent technological advancements, such as Lightning Labs’ Taro protocol, are enabling the direct issuance and transfer of stablecoins like USDT and USDC over the network. This development bridges the gap between Bitcoin’s decentralized security and the price stability of fiat-pegged assets, addressing a critical barrier to mainstream adoption [1]. Krizek’s vision hinges on the growing demand for efficient payment solutions, particularly in sectors requiring real-time settlements, micro-transactions, and global accessibility.

The potential benefits of this integration are substantial. Stablecoins on the Lightning Network could facilitate transactions at near-zero costs, settle in milliseconds, and bypass traditional banking intermediaries. These features make the network particularly appealing for cross-border remittances, e-commerce, payroll systems, and gaming economies, where speed and low fees are paramount. For example, global remittances could be executed for virtually no cost, while businesses could reduce reliance on credit card processing fees by accepting stablecoin payments instantly [1].

However, achieving Krizek’s forecast faces hurdles. User experience remains a challenge, as managing Lightning channels requires technical familiarity not yet widespread among average users. Liquidity management for large-scale transactions and regulatory clarity for stablecoins are also critical factors. The direct issuance of major stablecoins via protocols like Taro is still in development and must gain traction for widespread adoption. Additionally, broader developer and business integration into Lightning-based applications is necessary to scale the network’s utility [1].

Despite these challenges, the convergence of Bitcoin’s layer-2 infrastructure with stablecoins represents a compelling value proposition. As institutions and developers continue refining the technology, the Lightning Network’s ability to handle 5% of stablecoin volume by 2028 could redefine digital payments, offering a censorship-resistant, decentralized alternative to traditional financial systems.

Source: [1] [Lightning Network: A Transformative Leap Towards 5% Stablecoin Dominance by 2028] [https://coinmarketcap.com/community/articles/68831e87960a504cf76a41d0/]