The Bitcoin Lightning Network’s capacity changes significantly impact its scalability and price. As a Layer-2 solution, it enhances transaction speed and reduces costs by processing payments off-chain. When capacity grows, like the 63% rise from 3,350 BTC to 5,490 BTC in 2022, scalability improves, enabling millions of transactions per second. This alleviates blockchain congestion, making Bitcoin more practical for everyday use. Higher capacity often correlates with increased adoption, boosting demand and potentially driving price upward. However, price volatility and limited merchant uptake can hinder this effect. Conversely, capacity drops, as seen in 2019, may signal reduced utility or profit-taking, possibly pressuring price downward. Overall, while capacity expansion strengthens scalability and supports price growth, external factors like market sentiment and technical challenges also play critical roles.