Welcome to This Week in Crypto, your go-to source for the latest developments in the ever-evolving world of cryptocurrencies. In this edition, we explore the remarkable growth of Bitcoin’s Lightning Network, which continues to transform the landscape of crypto transactions. We also delve into the luxury automaker Ferrari’s bold move to accept cryptocurrency payments. And don’t miss our coverage of Trezor’s 10th-anniversary celebrations, as they launch new hardware wallets and self-custody solutions. Join us on this exciting journey through the week’s top crypto stories!
Bitcoin’s Lightning Network Grew Over 1,200% in the Last 2 Years, Per Report
Bitcoin’s second-layer Lightning Network has seen phenomenal growth, with a staggering 1,212% increase in routed transactions over the course of two years, according to data from the Bitcoin exchange River. In August 2023, there were approximately 6.6 million routed transactions, a remarkable jump from August 2021 when there were just 503,000. It’s also important to note that this growth occurred despite a 44% decrease in Bitcoin’s price. Lightning now accounts for at least 47% of Bitcoin’s on-chain transactions, suggesting its increasing adoption as a medium of exchange.
In terms of transaction volume, Lightning processed around $78.2 million in August 2023, marking a 546% increase from the $12.1 million recorded in August 2021. The average size of a Lightning transaction in August 2023 was approximately 44,700 satoshis or $11.84, with an estimated 279,000 to 1.1 million active Lightning users in September. Notably, 27% of the transaction growth can be attributed to use cases in gaming, social media tipping, and streaming.
This remarkable growth in the Lightning Network underscores its increasing role in Bitcoin’s ecosystem as a medium for transactions and payments, even in the face of market volatility.
Ferrari Announces It Will Accept Crypto Payments in the US
Ferrari has responded to growing customer demand by announcing its acceptance of cryptocurrency payments for its luxury sports cars in the United States. Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, disclosed that the decision to embrace cryptocurrency payments stemmed from requests by clients and dealers. The Italian automaker also has plans to extend this payment option to Europe in the near future.
The adoption of cryptocurrency payments in the United States will be facilitated by cryptocurrency payment processor BitPay, and will encompass prominent cryptocurrencies like Bitcoin, Ethereum, and USD Coin (USDC). Importantly, Ferrari emphasizes that there will be no additional fees or surcharges for using cryptocurrencies. The purchase process includes the conversion of cryptocurrency payments into traditional fiat currency to shield dealers from the potential volatility of cryptocurrencies.
Ferrari, which delivered over 1,800 cars to the U.S. in the first half of this year, anticipates robust sales going forward, with its order portfolio fully booked until 2025. The automaker sees the acceptance of cryptocurrency as an opportunity to connect with a wider audience and reach potential customers who may not have considered owning a Ferrari before. The next step in their crypto journey will involve expanding this payment option to Europe and other regions where cryptocurrencies are legally accepted. Ferrari’s bold move sets it apart from the majority of automotive companies, which have been hesitant to embrace cryptocurrencies due to their price volatility and environmental concerns.
Trezor Marks 10th Anniversary with Launch of New Hardware Wallet and Self-Custody Solutions
To celebrate its 10th anniversary, Trezor, a major provider of hardware cryptocurrency wallets, has unveiled three self-custody products. The main focus is the Trezor Safe 3, a new hardware wallet that supports over 7,000 cryptocurrencies. This launch comes almost five years after the introduction of the Trezor Model T in 2018, with the Trezor Safe 3 priced at $79 and available in four color options. Notably, Trezor maintains its dedication to open-source development, ensuring the security of its devices.
In addition to the hardware wallet, Trezor has introduced the Trezor Keep Metal, a physical private key storage solution made of corrosion-resistant stainless steel. It offers protection against fire, water, acids, and impacts, providing a secure backup for recovery phrases and private keys. The company’s Trezor Safe 3 Bitcoin-only hardware wallet, released as part of their anniversary celebrations, supports a limited edition run of 2,013 devices, with a portion of the proceeds donated to the Trezor Academy, an initiative aimed at promoting Bitcoin education.
