L BTC Trading Resumes Amid 15% Reserve Shortfall

SideSwap has resumed trading for L BTC on the Liquid network. While the exchange platform is back online, the bridge that allows users to convert L BTC back into native Bitcoin remains offline. This means users can trade the asset for a market price, but they cannot yet exit the system to claim their underlying Bitcoin.

Data from September 10 shows that the Liquid network has about 4,229 L BTC in circulation, but the federation reserve holds roughly 3,601 BTC. This indicates the assets are currently backed at approximately 85 percent of their value. The roughly 628 BTC gap follows a recent security incident that forced the network to pause operations.

Because the official peg out process is still suspended, the trading price of L BTC on SideSwap serves more as a signal of market confidence rather than a guaranteed exit price. Traders should note that without the ability to redeem tokens for Bitcoin at a one to one ratio, the price on the exchange may fluctuate based on how the market perceives the eventual recovery of the remaining reserves.

The Liquid Federation is still working through security updates and has not yet provided a date for when full redemption services will return. While SideSwap has confirmed that its markets are active, holders of L BTC and other issued assets should remain cautious until the network bridge is fully restored and the reserve gap is addressed.