Graham Krizek, founder and CEO of Voltage, a provider on Bitcoin’s Lightning Network, has forecasted that the network could handle 5% of the global stablecoin volume by 2028. He mentioned that the Lightning Network is set to benefit from increasing retail and institutional adoption of stablecoins, positioning it as a key player in stablecoin transactions.
Stablecoin market size and Lightning Network’s growth potential
The daily stablecoin volume is around $180 billion, as per CoinGecko. If the Lightning Network were to capture 5% of this, it could see $9 billion in stablecoin transactions daily. This projection is likely to grow as stablecoin regulations like the GENIUS Act take effect.
Krizek emphasized that the Lightning Network is the top scalability tool for stablecoins, which will increase stablecoin activity. While major players like Tether and Circle are not yet live on the network, adoption is expected to rise.
Tether and Lightning Network partnership shows early promise
Tether, the largest stablecoin issuer, announced Lightning Network support for Tether USDT in January. This support strengthens the Lightning Network’s position as a scalable solution for stablecoin transactions. Additionally, Lightning Labs released Taproot Assets (v0.6) in June, which aims to create a decentralized forex layer for stablecoins on Bitcoin.
The Lightning Network is projected to play a pivotal role in the future of stablecoin transfers, with more stablecoin issuers and financial institutions expected to adopt it. The scalability and peer-to-peer capabilities of the Lightning Network make it an ideal platform for stablecoin transactions moving forward.