Research Study
The Lightning Network:
Expanding Bitcoin Use Cases
Moving beyond one-to-one payments
by Daniel Gray
February 19, 2025 • 21 min read
Executive Summary
The Lightning Network, often referred to as a “payment scaling layer” on the Bitcoin network, has experienced significant growth since its 2018 launch. Initially designed to enable fast, low-cost transactions, Lightning has evolved to support a range of use cases beyond peer-to-peer transactions. Looking ahead, these advancements could solidify Bitcoin’s role in the global financial system, enhancing its long-term value proposition and investment potential.
This report combines publicly available metrics with proprietary data supplied by Voltage, a leading Lightning payment provider, to analyze the Lightning Network’s growth and potential opportunities. Key takeaways include:
- More businesses integrated the Lightning Network in 2024 than years past—a trend that could likely continue throughout 2025.
- The Lightning Network appears to be successfully delivering on its goal of being the most efficient way to transact in the digital asset ecosystem.
- Lightning can be viewed as a yield-bearing network that does not require users to give up control of their bitcoin.
The information herein was prepared by Fidelity Digital Asset Services, LLC (“FDAS LLC”), Fidelity Digital Assets, Ltd (“FDA LTD”), and Fidelity Digital Assets Ireland Limited ("FDA Ireland"). It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer to buy or sell any asset. Perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.
Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high-risk tolerance. Investors in digital assets could lose the entire value of their investment.
Custody and trading of digital assets are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897) ("FDAS LLC"). FDA LTD and FDA Ireland rely on FDAS LLC for these services. FDA LTD is registered with the Financial Conduct Authority under the U.K.’s Money Laundering Regulations. The Financial Ombudsman Service and the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by FDA LTD. FDA Ireland is incorporated in Ireland as a private limited company and provides certain virtual asset services described in the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021. FDA Ireland is registered with the Central Bank of Ireland for anti-money laundering and countering the financing of terrorism (AML/CFT) purposes only (C526991).
To the extent this communication constitutes a financial promotion in the U.K., it is issued only to, or directed only at, persons who are: (i) investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO"); (ii) high net worth companies and certain other entities falling within Article 49 of the FPO; and (iii) any other persons to whom it may lawfully be communicated.
This information is not intended for distribution to, or use by, anyone in any jurisdiction where such distribution would be contrary to local law or regulation. Persons accessing this information are required to inform themselves about and observe such restrictions.
FDAS LLC, FDA LTD, and FDA Ireland do not provide tax, legal, investment, or accounting advice. This material is not intended to provide, and should not be relied on, for tax, legal, or accounting advice. Tax laws and regulations are complex and subject to change. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
Fidelity Digital Assets is a registered service mark and the Fidelity Digital Assets logo is a service mark of FMR LLC.
© 2025 FMR LLC. All rights reserved.