- Lightning Network (LN) payments dip to lowest levels in a year. Bug or reduced interest?
- DeFi keeps breaking records, is $1 billion possible in 2020?
In our last DeFi update we highlighted the explosive growth of decentralized finance in both USD and Ether based valuation. The DeFi apps hit an all-time high in total USD value locked at $702 million USD on November 29th, representing a staggering 185% increase since January. In this update we focus on an unusual case of LN payments seeing a massive 90% drop in usage on November 29th 2019.
LN payments drop by 90% in 24 hours
The second layer Bitcoin solution, LN network, is no stranger to bugs as the platform continues to witness daily developments and upgrades to give users the ultimate payments experience using Bitcoin. The last 24 hours however saw a peculiar drop in LN payments before the volume further recouped back to normal levels.
While the value in USD locked in Lightning network has been on a gradual drop in the past 30 days, the past 24 hours has been a rollercoaster ride for the LN. According to data collected on DeFi Pulse, the total value on LN payments in USD value plummeted by over 90% from $6.3 million USD on November 28th to about $600 K USD in value the next 24 hours.
The value is back to normal at $6.3 million USD, as at time of writing which has caused some speculation on a probable bug on the LN network. However, with a number of nodes invisible to stats collected on DeFi Pulse, the sudden drop may be easily be a lack of complete info from the oracles.
A growing interest in DeFi
The sudden burst past $700 million USD in value locked in DeFi shows an increased interest in these Ethereum and Bitcoin based products. The products also reached an all-time high in ETH value locked at 4.4 million ETH. With interest in DeFi products on the rise is a $1 billion market possible in 2020? I wouldn’t bet against it.
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Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.