The latest Proof of Reserves data from Binance reveals significant changes in user positions, with Bitcoin reserves increasing while ETH and USDT are decreasing.
Meanwhile, Binance's stablecoin reserves have reached their highest surplus in six months, bolstering liquidity during periods of market volatility.
Bitcoin accumulation surged as user behavior shifted.
Binance users increased their Bitcoin balances by 4% month-over-month to 617,620 BTC according to the platform's 37th Proof of Reserves snapshot. There has been an increase of 23,768 BTC since November 1.
The platform uses Merkle trees and zk-SNARKs to allow users to verify their balances without disclosing personal information. The current reserve ratio consists of:
BTC: 102.11%
ETH: 100%
USDT: 109.16%
USDC: 137.7%
BNB: 112.32%
The system offers real-time transparency, unlike traditional audits that are periodic and rely on trust in third parties.
As of November 30, Binance's reserves were nearing USD 120 billion, with USDT (ERC-20) reaching a peak of USD 42.8 billion. Despite volatility, Binance remains the world's second-largest holder of Bitcoin reserves.
General sentiment on X (Twitter) suggests this trend supports Bitcoin as users accumulate this leading crypto while ETH and stablecoin balances decline.
The Ethereum holdings of users decreased by 1.32% to 4.04 million ETH (-54,257 ETH), while USDT balances fell by 1.24% to 34.3 billion USDT (-430 million USDT).
This pattern indicates a rebalancing rather than a large-scale withdrawal, as users shift into Bitcoin during periods of uncertainty.
Stablecoin reserves at a six-month high.
Analyst AB Kuai Dong emphasized the rapid increase of Binance's stablecoin reserves:
Excess reserve ratio of USDT: 109.16% (up from 101.52% in June).
Excess reserve ratio of USDC: 137.7%.
Overall excess reserve of the platform: 12.32% above user funds.
Excess reserve ratio of BNB: 112.32%, the highest among major assets.
He added that the excess reserve boosts 'the platform's ability to withstand risks', especially for stablecoins. Binance exchange has reiterated that all user funds are always supported 1:1.
Consistent accumulation from June to December indicates stronger liquidity management. It also aligns with legal expectations that reserves remain available for withdrawals rather than internal trading.
Signs for future movement?
CryptoQuant has observed that the Bitcoin reserve ratio of Binance recently touched its lowest point since 2018. This historical scenario has occurred before Bitcoin surged due to a decline in sell-side liquidity.
History shows that touching such low values often occurs before a sharp surge in Bitcoin, simply because the liquidity needed to stimulate price increases is now fully available on the platform, writes a CryptoQuant analyst.
However, the latest market data shows that Bitcoin is leaving global platforms, even as Binance increases, meaning Binance is gaining market share from competitors rather than reversing a major trend in self-custody of assets.
The combination of increasing Bitcoin accumulation, expanding excess reserves of stablecoins, and historically low reserve ratios creates a complex yet creative opportunity.
If the global economic situation stabilizes, the increase in liquidity and accumulation of Binance will prepare the platform to support higher trading activity during future bull markets.
