Changes in Bitcoin Lightning Network capacity significantly impact its scalability and price. As a Layer-2 solution, the Lightning Network enhances Bitcoin’s transaction throughput, processing millions of transactions per second off-chain, far exceeding the base layer’s 7 TPS limit. Increased capacity, like the rise from 3,350 BTC in January 2022 to over 5,490 BTC by February 2023, reduces congestion and fees, boosting scalability and making Bitcoin viable for everyday use. This efficiency can drive adoption, potentially increasing demand and supporting price growth, as seen with a 38% price rise in early 2022 alongside capacity gains. However, price volatility and limited merchant uptake may temper these effects. Overall, higher capacity strengthens scalability, fostering a positive, though not guaranteed, influence on Bitcoin’s price.