Experts in the industry believe that the Lightning Network, a Layer-2 scaling solution for Bitcoin, is boosting both retail and institutional adoption. They predict that the usage of Stablecoins could see a substantial increase over the next few years.
In a recent conversation with Cointelegraph, Graham Krizek, CEO of Voltage, a provider of Lightning Network payment solutions, mentioned that by 2028, up to 5% of the global Stablecoin volume could be processed through the Lightning Network.
“In three years, we could see at least 5% of Stablecoin volume utilizing the Lightning Network.”
Currently, the daily volume of Stablecoins hovers around $180 billion. According to CoinGecko, this could mean about $9 billion being transacted via the Lightning Network, based on present figures. This potential growth aligns with upcoming regulatory measures like the Genius Act, gaining traction both in the U.S. and globally.
Krizek emphasized that the adoption of Stablecoins would enhance the Lightning Network’s growth, stating, “Lightning is the primary scalability tool for Stablecoins,” with volumes possibly reaching billions.
Although he acknowledged there’s minimal Stablecoin activity on the Lightning Network now, he hinted that this could change in the near future.
“Stablecoins are starting to gain momentum on the Lightning Network. Major players like Tether and Circle haven’t fully engaged yet, and while current volume is nearly nonexistent, we expect significant growth this year.”
Possible Early Signs
There are indications that this shift has already begun, as Tether, the leading Stablecoin issuer, announced plans in January to integrate Tether (USDT) with the Lightning Network.
In June, Lightning Labs launched a new version of Taproot Assets that aims to transform the network into a decentralized foreign exchange for Bitcoin-backed Stablecoins.
Tether’s CEO, Paolo Ardoino, has shared concerns over blockchain’s scalability. He believes the peer-to-peer structure of Lightning uniquely suits large-scale Stablecoin transactions.
“The advantage of using USDT over Lightning is that it facilitates high-value transactions,” he stated in an interview earlier this year.
Retail Adoption on the Rise
Krizek noted that the growth of the Lightning Network will largely depend on retailers and developers pioneering its use.
“Developers are creating edge cases, and retailers are actively seeking, utilizing, and experimenting with Lightning, which is becoming essential for these new use cases.”
He added that customers are increasingly demanding Lightning support from businesses, which is driving more exchanges and companies to implement it. Interest from traditional institutions is also on the rise as they begin to recognize Lightning’s benefits for managing risks and improving capital access, although he feels it’s still early in this transition.
Companies like Cash App are already leveraging the Lightning Network, with estimates suggesting that 25% of their BTC transactions are now made using it, reflecting rapid adoption due to lower transaction costs and quicker processing times.
“Integrating Lightning for Bitcoin transactions is becoming standard, as you’d expect with any payment solutions.”
Network Capacity Insights
Currently, the Lightning Network boasts 14,000 nodes and 44,800 channels, with a capacity of around 3,820 BTC—valued at approximately $448 million. Krizek’s favored metric provider, Amboss, supports these figures.
On a similar note, Bitcoinvisuals indicated that network capacity, which reflects locked liquidity rather than trade volume on the Lightning Network, has decreased by 23% since the year’s start.
“We’re witnessing greater capital efficiency and more optimized network structures, as evidenced by fewer but larger channels,” Krizek noted.
He estimates that access to the Lightning Network now exceeds 700 million users across exchanges, wallets, and payment platforms, marking a doubling since last year.
Voltage aims to support this growth as an infrastructure provider, enabling wallet developers to integrate Stablecoin functionalities within the Lightning Network.
