In the world of cryptomonies in general, and of Bitcoin in particular, surprising facts occur at every moment. One of them is the record value that Bitcoin reached on Lightning Network earlier this week.
The total value on the Lightning Network (LN) is sometimes referred to as the Total Blocked Value (TVL). It is worth mentioning that it reached $12.4 million US dollars.
The important thing about this case is that the TVL record was recently broken. Consequently, just two weeks ago, the limit reached $12.37 million USD. Prior to that, the value of Bitcoin had remained at $12.30 since November 2019.
Why does the value of Bitcoin in LN go up?
According to estimates from the news portal CoinDesk, the increase in Bitcoin’s value by 30% since July, may have been the main reason. This is a rally that, according to many analysts, is not over. In this sense, it should be noted that Bitcoin is struggling to exceed $12,000.
Another important fact to keep in mind is that the total number of bitcoins in Lightning Network is about 1,060 BTC. This is an important figure, but it is below the record of 1,105 BTC reached during the month of May last year, 2019.
In any case, this is growth in general terms. This could be the cause of a significant upward trend in the main cryptomone currencies.
In this sense, it should be noted that the upward trend of the value of Bitcoin, could be motivated by several factors. The most important of them is the excess liquidity of the Federal Reserve.
Vulnerabilities discovered in Bitcoin Lightning Network
Slowly but surely
Compared to the TVL of Ethereum’s Blockchain-related applications, such as DeFi, the Lightning Network seems insignificant. However, the data shows an unquestionable growth in the value of Bitcoin.
Also, it should not be overlooked, as recently reported in Crypto Cash, that the growth of DeFi may be overestimated by nominal measurements such as those used by DeFi Pulse.
This last point is worthy of attention, since, according to DappRadar and its adjusted TVL application, DeFi growth is significantly lower. In any case, the confidence in Bitcoin, superior to any other protocol, guarantees that the value of this cryptomon currency in any application is a reliability index.