The Bitcoin (BTC) network's congestion issues appear to be improving, following an all-time high of 655,000 stuck transactions earlier this year. According to data from Finbold, extracted from Johoe's Bitcoin node, there has been a significant reduction in congestion by late September, despite a previous crash.
This congestion led to an increase in demand for block space, resulting in a rise in transaction fees. The fees had peaked at $31 but later stabilized below the $5 threshold, according to BitInfoCharts. This trend prompted users to transfer their BTC to the Lightning Network (LN) for off-chain transactions to avoid the high fees.
However, recent statistics from Amboss indicate a decrease in LN activity. This includes the shutdown of 1,033 nodes and the closure of 4,667 channels. At the same time, there was a 1.64% increase in LN capacity. These developments suggest that users might be returning to the Bitcoin blockchain for transactions as the congestion eases and transaction costs become more manageable.
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