Lightning Network Derivatives Exchange LNMarkets Hits Record Volume

Lightning Network-based Bitcoin derivatives exchange LNMarkets this week reported a rapid uptick in trading volume on its platform, as 40 percent of its aggregate trading volume was recorded in the past month.

LNMarkets launched on the Bitcoin mainnet in March, facilitating trades exclusively via Lightning. Although still in its alpha phase, LNMarkets had amassed over $11 million in total trading volume by October, before adding another $7 million since.

Notably, margin limits on the platform are set to 0.01 bitcoin per user due to European AML regulations.

As the company notes, it recorded its "six biggest trading days [by volume] over the past two weeks" alone.

LNMarkets raised a pre-seed round earlier this year that gained support from investors such as Bitfinex, Fulgur Ventures, and Arcane Crypto. The amount raised was not disclosed.

Lightning Is Maturing

LNMarkets' growth trajectory coincides with enhanced infrastructure development surrounding the Lightning Network.

In early November, Lightning Network development startup Lightning Labs released a peer-to-peer marketplace for node operators to buy and sell access to channel liquidity in a bid to bridge inefficiencies in the network's liquidity allocation.