Binance's latest proof of reserve shows significant changes in user positions. Bitcoin balances are increasing, while ETH and USDT are decreasing.
Binance's stablecoin excess reserves have reached a six-month high, strengthening liquidity during market volatility.
Bitcoin cumulative increase…changes in user behavior
Binance users have increased their Bitcoin balance by 4% monthly, reaching 617,620 BTC. This is an addition of 23,768 BTC since November 1.
Binance enables balance verification without user information exposure by using Merkle trees and zk-SNARKs. The current reserve ratios are as follows:
BTC: 102.11%
ETH: 100%
USDT: 109.16%
USDC: 137.7%
BNB: 112.32%
This system provides real-time transparency compared to traditional audits. Traditional audits are one-time and rely on third-party trust.
As of November 30, Binance's reserves are nearing $120 billion, with USDT (ERC-20) at a record $42.8 billion. Despite volatility, Binance still holds the second-largest Bitcoin reserves in the world.
The general sentiment on X(SNS) is that this trend is positive for Bitcoin. Users are stacking Bitcoin while reducing their ETH and stablecoin balances.
User Ethereum holdings decreased by 1.32% to 4.04 million ETH (-54,257 ETH), while USDT balances decreased by 1.24% to $34.3 billion (-$430 million).
The pattern suggests a reallocation rather than widespread withdrawals. Users are moving to Bitcoin during uncertain times.
Stablecoin excess reserves hit a six-month high
Analyst AB Kuai Dong highlighted the surge in Binance's stablecoin buffer:
USDT excess reserve ratio: 109.16% (up from 101.52% in June)
USDC excess reserve ratio: 137.7%
Overall platform excess reserves: 12.32% higher than user funds
BNB excess reserve ratio: 112.32%, the highest among major assets
He added that the increase in excess reserves "strengthens the platform's risk resistance capabilities." Specifically regarding stablecoins, he added.
Continuous increases from June to December suggest stronger liquidity management. This aligns with regulatory expectations. Reserves are fully available for redemptions, not internal trading.
Future movement signals?
CryptoQuant recently pointed out that Binance's Bitcoin reserve ratio has reached its lowest level since 2018. This situation historically precedes a strong Bitcoin rally and is due to reduced selling-side liquidity.
"History shows that these lows precede strong Bitcoin rallies. The liquidity for price increases is now fully prepared on the exchanges." – wrote CryptoQuant analysts.
However, recent market data indicates that while Bitcoin is leaving exchanges worldwide, Binance balances are increasing. This suggests gaining market share from competitors rather than reversing a broad trend towards self-custody.
The combination of increasing Bitcoin accumulation, expanding stablecoin excess reserves, and historically low reserve ratios creates a mixed but potentially constructive configuration.
When macro conditions stabilize, Binance's enhanced liquidity and increased buffer are in a position to support trading activity in future bullish phases.
