Binance's latest Proof of Reserves shows a significant change in user positioning, where Bitcoin balances are increasing while ETH and USDT are decreasing.
At the same time, Binance's stablecoin surplus reaches a six-month high, strengthening liquidity amid ongoing market volatility.
Bitcoin accumulation is increasing as user behavior changes
Binance users increased their Bitcoin balances by 4% month-over-month, reaching 617,620 BTC according to the exchange's 37th Proof of Reserves overview. This is an increase of 23,768 BTC since November 1.
The exchange uses Merkle trees and zk-SNARKs to allow users to verify their balances without revealing personal information. The current reserve levels are:
BTC: 102.11%
ETH: 100%
USDT: 109.16%
USDC: 137.7%
BNB: 112.32%
This system offers real-time transparency, unlike traditional audits that occur periodically and rely on third-party trust.
On November 30, Binance's reserves were close to 120 billion USD, with USDT (ERC-20) at a record level of 42.8 billion USD. Despite volatility, Binance remains the second largest holder of global Bitcoin reserves.
General sentiment on X (Twitter) is that this trend is positive for Bitcoin, as users accumulate seed crypto while ETH and stablecoin balances decrease.
Users' 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 USDT (-430 million USDT).
The pattern suggests more of a rebalancing rather than broad withdrawals, as users migrate to Bitcoin during times of uncertainty.
Stablecoins' over-reserves reach six-month highs
Analyst AB Kuai Dong pointed to a sharp increase in Binance's stablecoin reserves:
USDT surplus level: 109.16% (up from 101.52% in June)
USDC surplus level: 137.7%
Overall platform surplus: 12.32% over user funds
BNB surplus level: 112.32%, highest among major assets
He added that the rising surplus “enhances the platform's risk resistance capacity,” especially for stablecoins. Binance exchange emphasized that all user assets remain 1:1 secured.
The stable surplus from June to December signals stronger liquidity management. It follows regulatory expectations that reserves should remain fully available for redemption rather than inter-trading.
Signals for Possible Future Movements?
CryptoQuant noted that Binance's Bitcoin reserve level recently hit its lowest level since 2018. This situation has previously led to significant rallies in Bitcoin due to reduced sell-side liquidity.
“History shows that such low levels often precede significant Bitcoin rallies, simply because the liquidity required to drive a price increase is now fully available on the exchange,” wrote CryptoQuant analysts.
Still, recent market data shows that Bitcoin is leaving exchanges globally, even as Binance balances rise. This suggests that Binance is gaining market share from competitors rather than opposing the broader trend towards self-custody.
The combination of increased Bitcoin accumulation, expanding stablecoin surplus, and historically low reserve levels creates a mixed but potentially constructive setup.
If macroeconomic conditions stabilize, Binance's strengthened liquidity and growing buffers position the exchange to support higher trading activity in a future bullish phase.
