How Do Layer 2 Scaling Solutions like the Lightning Network Reduce Congestion on the Layer 1 Mempool?
Layer 2 solutions move the majority of transactions off the main blockchain (Layer 1). They allow users to conduct numerous transactions instantly and cheaply off-chain, only using the Layer 1 chain for opening and closing channels.
By aggregating many small transactions into two large Layer 1 transactions, they drastically reduce the demand for the limited block space, thus lowering the overall Mempool congestion and fees.