Bitcoin News Today: Voltage CEO projects Lightning Network to capture 5% of stablecoin volume by 2028

Voltage CEO Graham Krizek has projected that the Lightning Network—a second-layer scaling solution for Bitcoin—could capture 5% of global stablecoin transaction volume by 2028, translating to potential on-chain activity of $9 billion annually based on current stablecoin volumes [1]. This forecast, shared during an interview with Cointelegraph, highlights growing confidence in the network’s ability to compete with centralized systems for cross-border and high-volume transfers. Krizek emphasized that stablecoins would accelerate adoption by leveraging Lightning’s scalability, positioning it as the “top scalability tool” for stablecoin transactions [1].

The current Lightning Network infrastructure includes 14,000 nodes, 44,800 channels, and a capacity of 3,820 BTC (approximately $448 million), according to Amboss, a metrics provider cited by Krizek [1]. While network capacity has declined 23% since January 2024, Krizek noted that larger, more efficient channels are emerging, signaling a shift toward capital optimization. Access to the network, measured by users of exchanges, wallets, and payment platforms, has surpassed 700 million, doubling since last year [1].

Krizek attributed Lightning’s adoption to dual drivers: retail users testing edge cases and institutional interest in risk management and capital efficiency. He pointed to exchanges like Cash App, which routes 25% of Bitcoin transactions through Lightning, as early adopters of the technology [1]. Regulatory developments, such as the U.S. GENIUS Act, could further accelerate adoption by legitimizing decentralized stablecoin infrastructure.

Stablecoin activity on Lightning remains nascent but is gaining momentum. Tether announced in January 2024 that it would support USDT on Lightning, while Lightning Labs’ Taproot Assets (v0.6) aims to transform the network into a “decentralized forex layer” for stablecoins [1]. Krizek acknowledged that major stablecoin issuers like Tether and Circle are not yet operational on the network but anticipates rapid growth in the latter half of 2024.

Voltage, Krizek’s company, focuses on infrastructure to integrate stablecoins with Lightning, targeting developers and payment providers. The startup’s tools aim to reduce reliance on intermediaries and cut settlement costs by up to 90% compared to traditional systems [1]. However, achieving 5% market share faces challenges, including competition from layer-1 blockchains like Ethereum and Solana, which handle millions of stablecoin transactions daily.

Krizek’s vision aligns with broader industry trends, as stablecoin usage has surged to $180 billion in daily transactions. While Bitcoin’s blockchain processes roughly 300,000 transactions daily, stablecoin networks dwarf this volume, underscoring the scale Lightning must address to capture 5% [1].

The forecast arrives amid regulatory uncertainty, with U.S. lawmakers proposing stricter oversight for stablecoin issuers and the EU’s MiCA framework imposing compliance requirements on decentralized networks. Krizek argued that Lightning’s censorship-resistant design, rooted in Bitcoin’s architecture, could thrive in a post-MiCA landscape where privacy and interoperability are prioritized [1].

Source: [1] [Lightning Network could nab 5% of stablecoin flows by 2028: Voltage CEO] [https://cointelegraph.com/news/lightning-network-5-percent-stablecoin-volume-voltage-ceo?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound]