Bitcoin’s Lightning Network, the layer-2 payments system designed to make Bitcoin faster and cheaper to use, has reached a new all-time high in capacity, signaling renewed institutional interest even as grassroots adoption lags.

Data from AMBOSS shows Lightning capacity climbed to 5,637 BTC yesterday, surpassing its previous peak in March 2023. 

The surge, concentrated in November and December, follows a year of declining capacity, as more Bitcoin is added to existing channels, enabling off-chain payments that settle nearly instantly and at minimal fees.

Yet, the network’s growth in BTC held has not been mirrored by an increase in users or nodes. Lightning currently has…

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