Coinbase integrates Bitcoin Lightning Network, says CEO Brian Armstrong
Coinbase CEO Brian Armstrong said the cryptocurrency exchange will integrate the Bitcoin Lightning network into its platform, according to an April 8 tweet.
Armstrong made the statement in response to a tweet by Wicked, who called him out for not publicly commenting on the Lightning network earlier. Armstrong did not provide further information on when this integration will happen.
Lightning is a Layer 2 network built on Bitcoin to help it address scalability issues. The network offers faster transaction speeds and cheaper fees. It is also the most popular BTC L2 solution. Several cryptocurrency stakeholders reacted positively to Amrstrong’s statement, for example, Michael Saylor, founder of MicroStrategy, said, “Adding Lightning support for deposits and withdrawals would be phenomenal.”
Several others were skeptical, noting that it could take Coinbase forever. Meanwhile, some advised Coinbase to hurry up with the integration, as it could be that the exchange will eventually have nothing to offer besides Bitcoin, given the current regulatory environment. If Coinbase integrates Lightning, it will join competitors such as Kraken, Bitfinex, BitStamp and OKEx, which already support the L2 solution.
Meanwhile, Bitcoin Lightning adoption has steadily grown over the past year. The number of Bitcoins locked in Lightning reached an all-time high of 5,490 BTC in February. That’s a significant increase considering it had 3,350 BTC at the beginning of last year. It’s not just an increase in the total blocked value (TVL) of the network; transaction volume has also increased. BitPay reported that transaction volume increased 18% in 2022 compared to 2021. In the fourth quarter of 2022, the increase was 32% higher than in 2021.
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