Bitcoin Lightning Network processed $1.17 billion in monthly volume, usability questions remain

Bitcoin developer Paul Sztorc has delivered strong criticism of the Lightning Network, arguing that the layer-2 Bitcoin payment protocol works far less effectively than many users believe. Sztorc, a notable contributor to Bitcoin development, said on October 4 that there has been a “vast, years long conspiracy to lie about the LN user experience,” describing the ongoing promotion of Lightning as a “campaign of fraud” comparable to the high-profile Theranos scandal.

Lightning’s custodial dilemma and user experience

Sztorc claimed that more than 80% of Lightning payments are made through custodial services, meaning users rely on third parties rather than direct network participation. He compared this widespread use of custodial solutions to relying on a trusted intermediary, which stands in contrast to the decentralized vision of Bitcoin. However, due to the privacy-focused structure of Lightning transactions, the actual proportion of custodial payments cannot be confirmed from public data alone.

His statements have reignited debate within the developer community over whether Lightning has truly made Bitcoin transactions easier for the average user or if technical barriers and unreliable routing still hinder its everyday adoption.

Lightning was intended to provide faster, cheaper payments without recording every transaction on the blockchain. Nevertheless, the requirement for sufficient routing liquidity, and the need to manage channels and nodes, often complicates the process, especially for larger payments or users unfamiliar with technical setup.

Many users turn to custodial services because they are simpler and more reliable despite the tradeoff of trusting a third party. Sztorc accuses Bitcoiners of overstating Lightning’s accessibility, arguing that the dominant custodial usage undermines the project’s ideals.

Jesse Shrader, chief executive of Amboss, a Lightning infrastructure company, acknowledged that understanding the protocol’s liquidity challenges can be difficult at first but is now “trivial to solve with current tools or automation services.” According to Shrader, most users sending payments around $100 can expect about 99% reliability, based on Amboss’ simulations.

For everyday payments of around $100, most users can achieve 99% reliability in the core network, with Amboss’ simulations showing a 99.66% success rate for $100 payments.

Danny Stagg, marketing lead at Breez, a non-custodial Bitcoin payments provider, argues that much of today’s criticism is outdated. He notes that within the last two years, improved infrastructure and wallet solutions have reduced the complexity for end users. Stagg asserts that “non-custodial UX is now comparable with custodial.”

Developers and payment providers can now manage Lightning channel operations on behalf of users, allowing payments without requiring customers to run their own nodes or directly manage liquidity.

Roy Sheinfeld, chief executive of Breez, pointed to the impact of artificial intelligence coding tools in facilitating the development of Bitcoin-integrated apps. Stagg reports that more partners are integrating Bitcoin each quarter, reflecting increasing developer interest. Yet, this surge in development may not directly translate to mainstream usage for daily payments.

Breez is a payments infrastructure startup focused on simplifying Bitcoin transactions through the Lightning Network for developers and businesses.

Mini dictionary: Lightning Network, a Bitcoin layer-2 scaling solution allowing off-chain transactions for faster, low-fee payments, operates with payment channels and requires adequate liquidity to function efficiently.

Lightning by the numbers

A 2026 report by financial services company River found that Lightning processed $1.17 billion in transaction volume across 5.22 million transactions during November 2025. While this indicates significant activity, transaction numbers remain below the network’s August 2023 peak of 6.6 million, suggesting payment value is rising while participant counts may not be keeping pace.

Metric August 2023 November 2025 Number of Transactions 6.6 million 5.22 million Transaction Volume Not disclosed $1.17 billion

Payment processor CoinGate reported handling 782,403 crypto orders in the first half of 2026, an increase of 21.4% year-over-year. Of all Bitcoin payments processed, Lightning represented 9.6%, highlighting its ongoing but still limited footprint among Bitcoin users transacting via CoinGate.

Shrader challenged Sztorc’s assertion that custodial payments make up over 80% of Lightning’s usage, citing the network’s privacy features and stating that accurate data on custodial versus non-custodial usage remains out of reach.

Stagg acknowledged that while custodial services once dominated due to their ease of use, non-custodial solutions have since “caught up,” making the ecosystem more accessible to users seeking greater control of their funds.

Evaluating Lightning adoption remains complicated, as metrics like payment volume, network capacity, or developer activity each capture different aspects of usage and do not fully reflect everyday user experience or mainstream viability.

Technical advances and growing transaction numbers do not guarantee widespread usability, and the network’s progress should not be conflated with universal user comfort or daily adoption.

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