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Lightning Network powers 15% of Coinbase’s Bitcoin transactions

Lightning Network powers 15% of Coinbase’s Bitcoin transactions

GrafaGrafa2025/04/29 09:20
By:Mahathir Bayena

Coinbase announced that 15% of its Bitcoin (CRYPTO:BTC) transaction volume is now processed via the Lightning Network, marking a significant milestone since its integration in April 2024.

The Lightning Network, a layer-2 scaling solution built on top of Bitcoin, enables faster and cheaper transactions by moving payments off-chain through payment channels. This reduces congestion and fees on the main Bitcoin blockchain while maintaining decentralization.

“Integrating the Lightning Network was a key milestone in supporting the Bitcoin ecosystem and making payments faster, cheaper, and more useful for everyone. Within a year, 15% of our Bitcoin transactions utilizing Lightning demonstrates its real-world utility,” said Michael Rihani, Coinbase’s Product Director.

The Lightning Network’s adoption has grown steadily, with public channel capacity increasing by over 380% in Bitcoin terms since 2020, reaching more than 5,300 BTC (approximately $509 million at current prices) as of early 2025.

Private channels, which are not publicly visible, add further capacity.

Coinbase’s partner Lightspark focuses on scaling global payment infrastructure using the Lightning Network and provides developer tools to facilitate integration.

Alongside improving transaction efficiency, Coinbase announced the upcoming launch of the “Coinbase Bitcoin Yield Fund” on May 1, targeting annual returns between 4% and 8% to augment consumer yield on BTC holdings.

At the time of reporting, the Bitcoin price was $94,653.79.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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