Binance has released its latest Proof of Reserves report showing user holdings of Bitcoin (BTC) and Tether (USDT) have increased from the previous month, while Ether (ETH) balances dropped nearly 10%.
The report from August 1, shows user BTC holdings at over 591,000, up by 2.99% since July 1. That makes an increase of around 17,100 BTC. USDT balances also grew slightly by 0.87%, with users now holding 29.85 billion USDT.
ETH, on the other hand, saw a notable drop. Users now hold 4.555 million ETH, which is a 496,000 ETH drop, marking a fall of 9.84% compared to the previous month.
Binance uses this report to prove that all customer assets are backed 1:1. In simple terms, it means that if someone deposits one Bitcoin, Binance keeps at least one Bitcoin in its reserve to match it. They use a system called a Merkle Tree and zk-SNARKs for verification, allowing users to check and confirm their balances.
Drop in ETH and Increase in BTC, USDT Reserve
The drop in ETH is the most noticeable change. It could mean that some users might be selling or taking their ETH off the platform to stake it directly or store it in private wallets. This isn’t surprising, as some investors prefer to stake ETH directly to get better rewards.
The increase in BTC and USDT shows that some users may be getting ready to trade, while others are keeping their funds on Binance. BTC is still the most popular cryptocurrency to hold, and as a stablecoin, USDT is often used when the market is volatile.
Binance, being the most popular crypto exchange, is holding more crypto assets than what users have on the platform. BTC is backed at 102.96%, USDT at 102.27%, and ETH at 100.67%.
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