What is settlement capacity? Did river come out and say a while back this is not a very telling metric because it doesn't actually tell you how much settlement is taking place and they care more about efficiency?

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Actual settlement is private. Settlement size is limited by the lightning capacity in each channel. The total capacity of all channels is public information, reported as network capacity or settlement capacity.

It's basically how much value could theoretically be settled at once within the network as a whole.