Binance's Latest Proof of Reserves: Ethereum Holdings Plunge 7.35% in a Month, Raising Concerns

Binance's 40th Proof of Reserves report reveals a widespread decline in user holdings of major crypto assets, with Ethereum (ETH) experiencing the most significant decrease. The snapshot data, taken as of March 1, 2026, shows ETH holdings down 7.35% compared to February 1, far exceeding the adjustment幅度 of other assets. Bitcoin (BTC) holdings slightly decreased from 639,149 BTC to 631,145 BTC, a 1.25% drop. USDT reserves fell from $36.85 billion to $36.49 billion, a 0.98% decrease. BNB also saw a reduction of 175,167 coins, a 0.40% decline. The synchronized decline across all assets reflects an overall trend of user asset outflows.

The substantial outflow of ETH is particularly noteworthy. A near eight percent drop in a single month is rare among major crypto assets. This outflow could stem from users transferring assets to self-custody wallets or reflect selling activity on other platforms. However, the reserve report itself cannot distinguish between these two motivations.

Notably, this change coincides with a price correction for ETH between February and March, during which it rapidly declined from $2,150 to $1,970. However, as the report is a monthly snapshot, it's impossible to determine whether the asset outflow preceded, coincided with, or resulted from the price drop. Binance's Proof of Reserves mechanism aims to verify that user assets are backed 1:1. Changes in these figures only indicate a decrease in user holdings on the platform and do not directly point to liquidity risks or operational issues for the exchange. The report only tallies user assets and does not include the exchange's own funds. Therefore, the asset outflow reflects user behavior rather than the exchange's financial condition.