#LightningNetwork is very useful to users of crypto exchanges for two reasons. 

The first is that it greatly reduces the cost of #Bitcoin  transactions. Those who move large amounts of money to and from exchanges have no problem paying even $30 fees on individual deposits or withdrawals, but for everyone else even the current $2 can be a deterrent. 

LN reduces these castes to an infinitesimal, and therefore irrelevant, fraction, breaking down all possible barriers due to the high cost of Bitcoin transactions. 

The second and perhaps even more important reason is that it makes transactions in BTC almost instantaneous. 

Currently Bitcoin withdrawals and deposits to and from Binance can take up to hours before they are completed. 

In contrast, with LN they could be executed almost immediately. 

All of this makes holding Bitcoin on non-custodial wallets much cheaper and more efficient because it allows them to be moved quickly and cheaply to the exchange at any time. 

The slowness of Binance

#Binance is usually very quick to implement innovations. However, this time, as CEO #ChangpengZhao himself admitted, they have been particularly slow. 

It is better if the exchange takes its time to do things right. 

Also perhaps until now there was not a great demand from users to be able to use LN. 

Not least because to be able to use LN on Binance it is necessary to have a wallet that supports LN, and not everyone has that yet. 

However, lately there have been a lot of requests to be able to withdraw one’s funds from centralized exchanges in order to store them on non-custodial wallets, but in order to be able to do this smoothly, fast and cheap transactions are required. 

Thus this need also brings with it an implicit demand to be able to use Lightning Network to deposit or withdraw BTC on exchanges. 

The Lightning Network

Truth be told, the highest peak of existing LN channels was in February last year, when there were more than 87,000. Now they are down to 75,000, and they have been dropping since January. 

Instead, nodes are increasing slightly, even though the peak was still in January 2022. 

Instead, what is steadily increasing is the capacity of the LN network, which has risen above 5,400 BTC and close to all-time highs.