Binance Proof of Reserves Shows BTC Rise
Binance Proof of Reserves report reveals higher BTC holdings, while ETH and USDT balances declined in February snapshot.
- Binance reports 639,000 BTC in latest snapshot.
- ETH and USDT balances declined compared to January.
- Latest data reflects shifting user asset allocations.
The latest update from Binance highlights fresh insights into user balances. According to the Binance Proof of Reserves report dated February 1, user Bitcoin (BTC) holdings stood at approximately 639,000 BTC. This marks a 0.41% increase compared to the January 1 snapshot, representing an addition of 2,614 BTC over the past month.
The steady rise in BTC balances suggests that users may be strengthening their Bitcoin positions despite ongoing market fluctuations. Even a modest percentage increase at this scale reflects significant capital movement, given Bitcoin’s high market value.
Binance continues to publish monthly reserve updates as part of its transparency initiative, allowing users to verify that customer assets are backed on a 1:1 basis.
ETH and USDT Balances See Decline
While Bitcoin holdings moved higher, Ethereum (ETH) balances showed a noticeable drop. The report reveals that user ETH holdings totaled around 4.18 million ETH, down 3.74% from the previous snapshot. This equals a decline of 162,469 ETH in just one month.
Tether (USDT) balances also decreased. User holdings fell to approximately 36.8 billion USDT, a 3.07% reduction compared to January. This represents a decrease of about 1.16 billion USDT.
The decline in ETH and USDT could reflect shifting market strategies. Users may be reallocating funds into Bitcoin or moving stablecoins and Ethereum-based assets to other platforms, wallets, or DeFi protocols.
Transparency Remains a Key Focus
The Binance Proof of Reserves system is designed to increase confidence in centralized exchanges. After industry-wide concerns about asset backing and liquidity, regular reserve disclosures have become an important trust signal.
By publishing consistent monthly snapshots, Binance aims to reassure users that their assets are fully backed. The February report demonstrates that while asset balances fluctuate, the exchange maintains a clear record of user holdings.
As the crypto market evolves, these monthly updates provide valuable insight into user behavior and broader market sentiment.
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