Binance users lift BTC and ETH balances as USDT holdings slip in latest proof‑of‑reserves snapshot
Binance’s newest proof‑of‑reserves (PoR) disclosure shows a clear rotation inside user portfolios: more Bitcoin and Ethereum sitting on the exchange, and fewer Tether (USDT) tokens than a month earlier.
Using a June 1 snapshot, the 43rd PoR report indicates that customer holdings of the two largest cryptocurrencies by market cap increased noticeably compared with May 1, while the platform’s reported USDT balance edged lower by hundreds of millions of tokens.
BTC and ETH balances climb
According to the latest figures, user Bitcoin balances on Binance rose by 4.26% between May 1 and June 1. In absolute terms, that meant an additional 25,838 BTC on the exchange, taking the total to roughly 630,000 BTC held in user accounts at the time of the snapshot.
Ethereum holdings grew even faster over the same period. Customer ETH balances increased by 10.17%, or about 382,619 ETH, bringing the total to around 4.14 million ETH. The stronger percentage rise in Ethereum suggests that some users may be leaning more heavily into ETH exposure, at least on Binance, than they were a month earlier.
These increases can result from several types of activity: net deposits from external wallets, spot purchases on the exchange, movements between internal products such as margin or earn programs, or even the restructuring of trading strategies. The PoR methodology, based on point‑in‑time snapshots, does not distinguish among these factors; it only shows that more BTC and ETH were custodied for users at that specific moment.
USDT holdings trend lower
While Bitcoin and Ethereum balances moved up, the stablecoin picture shifted in the opposite direction. Binance reported user holdings of approximately 34.3 billion USDT as of June 1, a decline of 1.33% versus May 1. In nominal terms, that drop equals around 460 million USDT.
On its own, a lower USDT balance does not automatically signal outflows from the exchange. Part of that capital might have been converted into BTC, ETH, or other assets on Binance, deployed into derivatives positions, or moved into different yield or staking products. Nevertheless, because USDT and other stablecoins are widely used as “dry powder” for traders, a reduction in reported holdings can hint at a change in risk appetite or positioning.
Market participants often monitor stablecoin reserves to gauge whether users are sitting in cash‑like instruments waiting to buy, or whether they have already rotated into higher‑volatility crypto assets. In this case, the combination of higher BTC and ETH balances with a modestly lower USDT figure suggests that at least some traders may have already started deploying their stablecoin capital.
Proof of reserves still under scrutiny
Binance, regarded as the largest crypto exchange by both user count and trading volume, has now published 43 proof‑of‑reserves updates. The June 1 snapshot continues the company’s practice of periodically demonstrating that user assets are backed on‑chain.
The exchange asserts that its PoR process is designed to show that customer balances are held on a “1:1” basis and that additional reserves are maintained on top. By using blockchain data and cryptographic methods, Binance aims to give users a way to verify that the reported holdings actually exist in externally visible wallets.
However, the PoR mechanism is not a real‑time balance sheet. Because it relies on discrete snapshots, it reflects conditions only at a particular moment. Rapid inflows, outflows, or market moves that occur before or after the snapshot will not be captured until the next report. That time‑lag is one reason analysts tend to treat PoR as one data point among many, rather than a complete picture of an exchange’s financial health.
Zero‑knowledge proofs and user privacy
An important component of Binance’s approach is its open‑source PoR system, which incorporates zero‑knowledge proofs. This cryptographic technique allows users to verify that their assets are included in the overall liability set without exposing individual account balances to the public.
By employing zero‑knowledge proofs, Binance tries to balance two goals: providing evidence that user liabilities are properly accounted for, and maintaining privacy around personal holdings. Users can, in theory, check that their account is part of the verified Merkle tree structure without revealing how much they own.
This approach emerged as one of the more sophisticated PoR implementations in the sector. It reflects a broader move in the crypto industry toward mathematically verifiable transparency, rather than relying solely on traditional attestations or opaque internal records.
Context: Binance’s position in the reserves landscape
Earlier in January 2026, Binance topped proof‑of‑reserves rankings with reported assets totaling about 155.6 billion dollars, based on external aggregator data. That scale underscores why market observers pay close attention to any shifts in its on‑chain balances: changes at Binance can sometimes mirror broader trends in retail and institutional positioning.
In a separate reserves update from May 2025, Binance was reported to be backing major tokens such as Bitcoin, Ethereum and USDT at more than 100%, implying a surplus above user liabilities for those assets. Such findings have been closely watched ever since the collapse of other large centralized exchanges pushed users to demand more robust evidence that their deposits are fully covered.
The June 1 snapshot marks a contrast with some earlier episodes. During a weaker market phase highlighted in a previous report, Binance’s September balances showed simultaneous declines in BTC, ETH, and USDT. In the latest data, BTC and ETH moved higher, while USDT slipped, painting a different picture of user behavior on the platform.
What the balance shift might signal for traders
The combination of higher BTC and ETH holdings and lower USDT balances can be interpreted as a sign that users are tilting more directly into core crypto exposure. When traders expect rising volatility or potential upside, they often rotate from stablecoins into major assets like BTC and ETH, increasing the proportion of their portfolio that is subject to price swings.
Conversely, during risk‑off periods, users may sell volatile coins into stablecoins, driving up USDT balances while crypto holdings fall. The latest PoR data suggests the opposite pattern for Bitcoin and Ethereum, at least at the time of the snapshot.
Still, it is important not to over‑interpret a single dataset. Some users may have withdrawn USDT to other platforms, moved capital into decentralized finance protocols, or simply reduced overall market exposure. Without transaction‑level context, PoR only shows that a rotation occurred, not the motivations behind it.
Why BTC and ETH remain the core reserve barometers
In most exchange reserve reports, Bitcoin and Ethereum serve as the two main non‑stablecoin pillars. Their dominance stems from deep liquidity, broad institutional acceptance, and their role as base collateral in many trading and lending structures across the industry.
Because of this centrality, changes in BTC and ETH reserves are often treated as leading indicators of how comfortable users feel leaving assets on a centralized platform. Rising balances can suggest either confidence in the exchange, a preference for using centralized venues for trading, or simply a shift from self‑custody into custodial solutions for convenience.
For analysts monitoring market structure, the scale and direction of BTC and ETH holdings at major exchanges like Binance can also contribute to narratives about accumulation, distribution, or preparation for upcoming macro events such as halving cycles, regulatory developments, or interest‑rate decisions.
The limits of proof of reserves
Despite its value, proof of reserves has important limitations. It primarily answers the question: “Does the exchange hold at least as many on‑chain assets as it claims on behalf of users at a given point in time?” It does not, by itself, reveal:
– The full extent of the exchange’s liabilities, including any off‑chain obligations.
– Whether there are outstanding loans, collateral rehypothecation, or other encumbrances on those assets.
– The corporate balance sheet, cash flows, or exposure to external counterparties.
– Nuanced user behaviors, such as whether large holders are preparing to withdraw or simply rebalancing internally.
Because of these gaps, regulators, auditors and sophisticated traders generally treat PoR as one building block within a broader risk‑assessment toolkit. On‑chain proof is meaningful, but it does not replace full financial audits or comprehensive disclosures.
How users can read PoR data more effectively
For individual traders and longer‑term investors, understanding how to interpret PoR snapshots is becoming a basic part of due diligence. Some practical considerations include:
– Looking at trends, not just one report. Month‑over‑month or quarter‑over‑quarter changes in reserves give more insight than a single number.
– Comparing shifts across key assets: moving from stablecoins to BTC/ETH can indicate increasing risk‑on sentiment, while the inverse may signal caution.
– Watching for consistency: large, unexplained swings in reserves can warrant deeper investigation or monitoring.
– Considering macro context: regulatory news, major protocol upgrades, or sharp price moves often coincide with notable reserve changes.
By combining PoR data with other on‑chain analytics and market indicators, users can form a more complete view of how funds are flowing through centralized venues.
Post‑FTX environment and rising transparency expectations
The collapse of major centralized platforms in previous cycles profoundly changed how users think about custody risk. Proof‑of‑reserves initiatives gained prominence as customers demanded clearer, verifiable evidence that exchanges hold what they claim.
In this environment, Binance’s recurring reports function as both a marketing tool and a risk‑management signal. Regular disclosures aim to reassure users that assets are accounted for, while the open‑source and zero‑knowledge components are intended to mitigate privacy and security concerns.
At the same time, heightened expectations mean that users are increasingly sensitive to inconsistencies or delays in transparency efforts. Exchanges that fail to provide timely or verifiable proof may face greater skepticism, especially among institutional clients and high‑net‑worth traders who manage significant balances.
What the June snapshot ultimately shows
Taken together, the latest Binance proof‑of‑reserves snapshot suggests that, at the start of June, users on the platform were holding more of the two flagship crypto assets-Bitcoin and Ethereum-while keeping a slightly smaller cushion in USDT. That pattern hints at a tilt toward direct market exposure, even though the underlying reasons are not disclosed in the report.
BTC and ETH continue to occupy the central role in Binance’s non‑stablecoin reserves, and changes in their balances remain a closely watched signal for the broader market. Meanwhile, the decline in USDT, although modest in percentage terms, adds an extra data point to ongoing discussions about how traders deploy stablecoins in different market conditions.
Ultimately, proof of reserves provides a transparent snapshot of backing at a single point in time and offers valuable insight into how assets are distributed across user accounts. But it should be read as part of a wider mosaic that includes market sentiment, regulatory developments, and the financial robustness of the exchange itself-rather than as a standalone measure of overall health.