Binance Proof-of-Reserves Report Shows Bitcoin and Ethereum Assets Declining, While Stablecoins Increase

The world's largest crypto exchange, Binance, has released its latest proof-of-reserves report, and it contains some interesting and unexpected data.

Binance, the world’s largest crypto exchange, has released its latest proof-of-reserves report, revealing some intriguing and surprising data. The report, which is the 22nd monthly installment and provides a snapshot as of Sept. 1, shows that Binance users’ Bitcoin assets stand at 605,000, down 1.27%, and Ethereum assets are 4.486 million, down 4.58% from the last time, which translates to a decrease of 215,000 ETH.

However, the user’s USDT assets are 22.11 billion, which is up 4.34% from the last time, showing an increase of 919 million USDT.

As it appears, a trend among Binance users is that their holdings in major cryptocurrencies are decreasing, while those in stablecoins are increasing. This could be attributed to users cashing out and selling their cryptocurrency for USDT and other options like FDUSD. Holdings of the latter increased even more — up to 2.23 million coins, which is 59.2% higher than the previous month.

This trend also affected XRP. Users holding the seventh-largest cryptocurrency decreased to 2.75 billion XRP, which is 174.89 million coins less than in August. Binance still offers 100.7% coverage for all user assets on its platform and itself holds 2.77 million XRP. Last month, however, it was covered by even more — by 6.4%.

If there’s a silver lining here, or even a blessing in disguise, it is the fact that users are opting for "crypto cash" rather than traditional fiat. They are exchanging their BTC and altcoin holdings for stablecoins, staying in the market but somewhat on the sidelines.

Perhaps, when the conjecture becomes more clear, this ton of digital money will flow back into assets like XRP, creating a new wave of growth for the cryptocurrency market

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