Binance ETH & SOL Selloff Sparks Mystery Over Reserves

Binance is offloading ETH and SOL, yet their Ethereum reserves are at 100.67%. What’s really going on?

  • Binance is selling ETH and SOL despite high ETH reserves.
  • Ethereum reserves remain mysteriously full at 100.67%.
  • The source of the ETH inflow remains unclear.

In recent days, Binance has been consistently offloading significant amounts of Ethereum ($ETH) and Solana ($SOL). This might not seem unusual at first—exchanges often manage liquidity this way. However, what’s caught the attention of the crypto community is a puzzling contradiction: despite the continuous outflows, Binance’s Ethereum reserves reportedly sit at an unusually high 100.67%.

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This figure has raised eyebrows because logically, if Ethereum is being sold off in large quantities, one would expect the reserves to drop. So, where exactly is all this ETH coming from?

Ethereum Reserves: A Mystery Behind the Numbers

According to on-chain data, Binance appears to maintain a fully replenished ETH balance even while actively selling. This has led to speculation within the community. Some believe the exchange could be moving ETH between internal wallets or sourcing liquidity through over-the-counter (OTC) channels that aren’t immediately visible on-chain.

Others suspect algorithmic trading or market-making strategies may be involved—methods where Binance might temporarily borrow ETH to fulfill orders and then restore reserves shortly after.

Regardless of the mechanism, the optics are peculiar: large outflows with no corresponding reserve drop raise transparency concerns, especially in a post-FTX era where exchange trust is paramount.

Why It Matters for Investors

For retail investors and crypto enthusiasts, this situation is a reminder to stay cautious and informed. When large exchanges handle vast amounts of assets, their movements can influence market prices and investor sentiment.

Understanding on-chain activity, reserve levels, and potential off-chain maneuvers helps build a clearer picture of what’s really happening behind the scenes.

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Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.

Aurelien Sage

Aurelien Sage is a blockchain enthusiast and writer, crafting insightful articles on decentralized technologies, Web3, and the future of finance. His work simplifies complex concepts, empowering readers to navigate the evolving crypto landscape with confidence.

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