Bitcoin is currently facing a major test. The price of the largest crypto asset in the world is hovering around $41,000. Although the selling pressure has been increasing significantly in the past few days, BTC has managed not to fall below the $40,000.
Coinmarketcap estimates that Bitcoin’s market capitalization is close to $800 billion. Despite the recent price correction, BTC has maintained its crypto market dominance at 42%. Bitcoin’s address activity has also significantly risen above its $40,000 price.
Bitcoin’s recent price stability has been largely due to its strong network activity and an increase in institutional inflows. Although bearish sentiment has risen in the last few hours, long-term BTC owners have increased their portfolios to ensure market stability.
The latest digital asset fund flows report, published by CoinShares, shows that BTC investment products received a total of $50,000,000 worth of inflows over the past week. The Bitcoin lightning network witnessed a significant increase in activity over the past few days.
Bitcoin Lightning Network
This week, Bitcoin’s lightning network metrics, including total channel count and lightning node count, reached new heights. Paolo Ardoino (CTO of Bitfinex) commented on the recent growth of the lightning network. “From a technical perspective, anyone with the experience and highly trained in computer science should understand that the Lightning Network provides the best way to create a high-frequency and robust, scalable payments system. As it is being used in real-life applications such as Twitter, it’s not surprising that it’s seeing record usage.
“The Lightning Network is the most positive development that the bitcoin ecosystem has ever seen. It could increase bitcoin adoption and encourage new investment. Ardoino said that Defi is a good way to create an ecosystem that can scale for mass adoption.