Binance PoR signals BTC pileup, rising excess reserves, Bitcoin rally

Binance’s latest Proof of Reserves reveals a major shift in user positioning as Bitcoin balances rise while ETH and USDT fall.

At the same time, Binance’s stablecoin excess reserves reached a six-month high, strengthening liquidity amid continued market volatility.

Bitcoin accumulation increases rapidly due to changes in user behavior

According to the exchange’s 37th Proof of Reserve snapshot, Binance users’ Bitcoin balances increased by 4% month-on-month to reach 617,620 BTC. This is an addition of 23,768 BTC since November 1st.

The exchange leverages Merkle Trees and zk-SNARKs to allow users to check their balances without disclosing personal information. Current reserve requirements include:

• BTC: 102.11%
• Ethereum: 100%
• USDT: 109.16%
• USDC: 137.7%
• BNB: 112.32%

This system provides real-time transparency, unlike traditional audits that are temporary and rely on third-party trust.

As of November 30th, Binance’s reserves are hovering near $120 billion, while USDT (ERC-20) has reached an all-time high of $42.8 billion. Despite the volatility, Binance remains the world’s second-largest holder of Bitcoin reserves.

The general sentiment on Twitter is that this trend is bullish for Bitcoin, with users accumulating Pioneer crypto as ETH and stablecoin balances decline.

The amount of Ethereum held by users decreased by 1.32% to 4.04 million ETH (-54,257 ETH), and the USDT balance decreased by 1.24% to 34.3 billion USDT (-430 million USDT).

Binance Asset Reserve. Source: Woo Blockchain

This pattern suggests a rebalancing rather than a wholesale withdrawal, with users migrating to Bitcoin during times of uncertainty.

Stablecoin excess reserves hit six-month high

Analyst AB Kuai Dong highlighted the rapid increase in Binance’s stablecoin buffer.

• USDT excess reserve ratio: 109.16% (up from 101.52% in June)
• USDC excess reserve ratio: 137.7%
• Platform-wide excess reserves: 12.32% more than user funds
• BNB excess reserve ratio: 112.32%, highest among major assets

He added that, especially in the case of stablecoins, an increase in excess reserves “strengthens the platform’s risk tolerance capabilities.” The Binance exchange reiterated that all user assets will continue to be backed on a 1:1 basis.

The consistent increase from June to December suggests stronger liquidity management. This is also consistent with regulators’ expectations that reserves be fully available for redemptions rather than internal transactions.

A sign of possible future moves?

CryptoQuant noted that Binance’s Bitcoin reserve ratio recently reached its lowest level since 2018. This situation has historically preceded a strong rally in Bitcoin due to reduced sell-side liquidity.

“History has shown that such lows are often preceded by a strong rally in Bitcoin, simply because the liquidity needed to fuel the price surge is now fully available on exchanges,” said CryptoQuant analysts.

However, recent market data shows that Bitcoin is moving away from exchanges around the world, even though Binance’s balances are increasing. This suggests that Binance is gaining market share from competitors rather than reversing a broader trend toward self-custody.

The combination of increased Bitcoin accumulation, growing stablecoin excess reserves, and historically low reserve ratios creates a mixed but potentially constructive situation.

Once macro conditions stabilize, Binance’s enhanced liquidity and expanded buffers position the exchange to support more trading activity in future upswings.

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