Binance has sustained a reserve ratio exceeding 100% for 29 uninterrupted months, notwithstanding rumors regarding the cryptocurrency exchange liquidating a considerable share of its Bitcoin reserves, as reported by blockchain analytics company CryptoQuant.
The reserve ratio serves as a crucial indicator which demonstrates if an exchange possesses sufficient assets to correspond with client balances. A ratio above 100% signifies that Binance retains more reserves than the total client balances on its platform, thereby mitigating insolvency dangers.
Binance Sustains 100%+ Reserve
CryptoQuant analyst Maartun recently indicated that Binance’s aggregate customer balance stands at 633,092 BTC. Out of this total, 606,143 BTC is directly held by Binance, whereas 26,948 BTC is kept as BTCB—a tokenized variant of Bitcoin on the BNB Smart Chain—administered through third-party custody.
To validate this information, CryptoQuant cross-examines Binance’s reported BTC exchange balances with on-chain Bitcoin network reserves. The matched figures bolster the transparency of Binance’s financial disclosures.
This report emerges amidst speculations that Binance is offloading its BTC holdings for USDC stablecoin. However, the exchange countered these assertions, claiming that the action is merely part of its normal accounting procedures. Analysis from CryptoQuant further substantiates these assertions.
“According to this analysis, Binance’s proof-of-reserve data seems robust. Since they began publishing reports following the FTX collapse, their reserves have consistently remained above 100%. Despite the recent FUD on Crypto Twitter, there appears to be no reason for alarm,” Maartun remarked.
Binance began releasing proof-of-reserve (PoR) reports in late 2022 following the downfall of FTX. The FTX collapse, which transpired in November 2022, brought to light significant mismanagement of customer assets, urging Binance and other exchanges to implement PoR as a measure for transparency to regain user confidence.
Reliable Liquidity Hub
In a different development, Binance has surfaced as the leading centralized exchange for cryptocurrency outflows, managing more than a quarter of all BTC and nearly half of ETH withdrawals this month.
As per CryptoQuant, 6.40 million ETH were withdrawn from centralized exchanges in early March, with Binance constituting 46% of those outflows. In a similar vein, 496,000 BTC exited exchanges, with 27% originating from Binance.
While these figures might initially spark apprehension, analysts argue they reflect institutional accumulation, strategic asset redistribution, and confidence in Binance as a liquidity center for substantial holders and institutions.
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