Binance Proof of Reserves Report shows BTC and ETH holdings rise
Binance released its 43rd Proof of Reserves (PoR) report using a June 1 snapshot of user balances. The Binance proof of reserves report shows user BTC increased 4.26% in May to about 630,000 BTC (+25,838 BTC). User ETH grew faster, up 10.17% to about 4.14 million ETH (+382,619 ETH).
At the same time, the Binance proof of reserves report shows a decline in stablecoins: user USDT fell to about 34.3 billion USDT, down 1.33% from May 1 (roughly -460 million USDT). The report does not explain why balances changed (deposits, purchases, transfers, withdrawals, or product movements).
Traders watch PoR updates because they are intended to show customer assets are backed on-chain on a 1:1 basis with additional reserves, but PoR is snapshot-based and does not provide a live balance sheet or a full view of liabilities and off-chain obligations. Still, the mix of higher BTC/ETH balances alongside lower USDT suggests users may have rotated into core crypto exposure ahead of mid-June trading.
Neutral
The Binance proof of reserves report is mixed for market positioning. On the bullish side, BTC and ETH user balances both rose (BTC +4.26%, ETH +10.17% in May), which can be read as continued or increased on-exchange exposure to core assets. On the bearish/offsetting side, USDT holdings declined about 1.33%, which may reduce readily available stablecoin liquidity for traders who rely on USDT as “dry powder.”
Because PoR is snapshot-based and does not attribute the balance changes to specific actions (buying vs. withdrawals vs. internal transfers), traders should treat it as a signal of portfolio rotation rather than proof of improved overall exchange solvency. Historically, PoR updates that show rising BTC/ETH balances without a stablecoin rebound can lead to short-term volatility: spot demand may look firmer for BTC/ETH, while stablecoin-driven leverage and market-making conditions could tighten. Over the longer term, repeated PoR consistency across multiple months tends to reduce tail-risk in sentiment, but this single report alone is unlikely to trigger a sustained trend.