Bitcoin is currently going through a major test as the price of the world’s largest crypto asset is hovering near $41,000. The selling pressure has increased substantially in the last few days, but BTC has managed to stay above the price level of $40,000.
According to Coinmarketcap, Bitcoin has a market cap of nearly $800 billion. Despite its recent price correction, BTC’s crypto market dominance has stayed above 42%. Bitcoin’s address activity also jumped substantially above the $40,000 price level.
Bitcoin’s strong network activity and a jump in institutional inflows have played an important role in its latest price stability. While the bearish sentiment has spiked in the last few days, long-term BTC holders have expanded their portfolios to provide market stability.
According to the latest weekly digital asset fund flows report published by CoinShares, BTC investment products attracted a total of $50 million worth of inflows in the last week. However, the Bitcoin lightning network saw a substantial increase in the overall activity in the last few days.
Bitcoin Lightning Network
Bitcoin’s lightning network metrics including lightning node count and total channel count reached record highs this week. Commenting on the recent growth in the lightning network, Paolo Ardoino, CTO at Bitfinex, said: “From a purely technical point of view, anyone that has the experience and is highly trained in computer science should know that the Lightning Network is the best way to build a high-frequency, robust and scalable Payments system. It comes as no surprise that it is seeing record volumes of usage as it is being implemented in real-life use cases such as Twitter."
“The Lightning Network is one of the most bullish developments that the bitcoin ecosystem has seen so far. It has the potential to increase bitcoin adoption and drive new investment in the space. Furthermore, if we’re talking about Defi, I believe it will be the right way to build an ecosystem that is actually scalable for mass adoption," Ardoino added.
