Liquid Network Peg FlowTRINITY EXCLUSIVE
Tracks net BTC flowing into (peg-in) and out of (peg-out) the Liquid Network over time. Liquid uses confidential transactions, making peg flows the only observable window into institutional activity on this privacy-focused sidechain.
Trinity exclusive model
This metric is a proprietary Trinity Insights model. Its formula, inputs, weights and parameters are NOT disclosed. The page documents only the output (bounded scale, interpretation zones, historical context). Access to the score and its time series is via the REST API and the MCP server, subject to the required tier.
What is it?
Blockstream's Liquid Network is a federated sidechain where BTC is represented as L-BTC (Liquid Bitcoin). To enter Liquid, a user locks BTC on the main blockchain (peg-in) and receives L-BTC. To exit, they burn L-BTC and recover BTC (peg-out). This chart tracks these flows over time. What makes Liquid unique: it uses confidential transactions (hidden amounts), making it a sort of 'dark pool' for Bitcoin. Peg flows are the only observable window into this activity.
How to read
Line above zero = BTC entering Liquid (net positive peg-in). Line below zero = BTC leaving Liquid (net negative peg-out). The cumulative area under the curve shows total L-BTC supply. Sudden peg-in spikes may indicate significant institutional positioning. Peg-out spikes may mark capital exits.
Key zones
Total L-BTC supply fluctuates significantly across cycles. Monthly net flows exceeding ±100 BTC are significant. Massive peg-outs observed historically during bear markets (-150 to -200 BTC in a month) indicate institutional capital exits. Massive peg-ins often follow institutional product launches or favorable regulatory decisions.
What to observe
Peg-in patterns before BTC price movements are particularly interesting. Institutions using Liquid for settlement may show positioning activity 4-6 hours before movements become visible on public exchanges. Also observe correlation with BTC volatility - Liquid is often used for cross-exchange arbitrage operations.
Historical context
The Liquid Network launched in September 2018 and has seen structural growth in waves starting in 2023, driven by increasing institutional adoption and the launch of Simplicity (advanced smart contracts on Liquid). Locked L-BTC supply has gradually crossed successive thresholds across cycles. The historical series covers the entirety of the network since September 2018 at monthly granularity, allowing cycle-scale analysis.
Expert notes
⚠️ Trinity Exclusive Model - Monthly aggregated data is reconstructed from the public Liquid chain. Peg-ins are specific P2WSH transactions to the Blockstream federation. Peg-outs go through an 11-of-15 functionary signing mechanism. Peg-in delay is about 102 confirmations (~17h). Transactions inside Liquid are confidential and are NOT visible in this chart - only monthly net entry/exit flows are. The cumulative supply shown is the sum of net flows and converges to the actual on-chain supply (deviation <0.01% from minor burns).
Common mistakes to avoid
Liquid is FEDERATED, not trustless like the Lightning Network. The 15 functionaries control peg-outs. Do not confuse Liquid growth with Bitcoin decentralization - it is a design trade-off for speed and privacy. L-BTC is not 'real BTC' - it is an IOU issued by the federation.
Programmatic access
REST API
curl -sS \
'https://api.trinityinsights.io/api/v1/onchain/liquid-peg-flow/history?days=90' \
-H 'X-API-Key: $TRINITY_API_KEY'MCP server
{
"tool": "get_chart_value",
"metric_id": "liquid-peg-flow",
"timeframe": "1y"
}Required tier: pro. See the pricing grid for the tier list and the MCP documentation for multi-client configuration.
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Institutional disclaimer
Trinity Insights is an educational and analytical tool. The metric above does not constitute investment advice. Trinity Insights is not a Crypto-Asset Service Provider (CASP) registered under MiCA Regulation (EU) 2023/1114. See the full disclaimer.