Binance PoR Shows Declining Ethereum and USDT Stash, Here’s the Implication

Key Insights

• Ethereum and USDT balances dropped in the latest Binance PoR snapshot.
• Bitcoin holdings increased as users added more BTC in December.
• USDC excess reserves rose while ETH and SOL excess balances fell to zero.

Binance PoR for December shows a drop in user Ethereum and USDT balances on the exchange.

Notably, the update shows how users moved assets during the month and how reserves shifted across major tokens.

Ethereum and USDT Balances Move Lower in the New Report

Binance PoR shows that user Ethereum and USDT holdings moved lower in December.

The exchange released the report recently, marking the thirty-seventh update in the series. The report shows only user balances on the platform.

It is worth noting that the data shows that user Ethereum holdings stood at 4.04 million ETH. This marked a fall of 1.32% from the previous month.

User USDT holdings also dropped lower. The new balance sits at 34.3 billion USDT, showing a drop of 1.24%.

User Bitcoin balances moved in the opposite direction. The new figure shows 617,620 BTC held in the Binance reserve. This marks a rise of 4%. This increase shows that users added more BTC to their accounts within the month.

The PoR also shows the level of excess balances. These excess balances represent the amount held above user deposits.

According to on-chain analyst 0xG00gly, excess ETH and SOL reserves dropped to zero.

This drop means the exchange did not hold any extra ETH or SOL beyond customer deposits at the time of the snapshot.

The analyst also pointed out a rise in stablecoin excess balances. Most of this rise came from USDC.

This change follows a revenue-sharing arrangement that began in December 2024. The update suggests that internal flows shifted toward USDC during the period.

Stablecoins and Bitcoin Present Different Activity Patterns

It is worth noting that a separate post from Coin Bureau added more context to the ETH supply trend beyond Binance.

As detailed, ETH held on centralized exchanges is now at its lowest point since 2015.

Only 8.7% of the total ETH supply sits on exchanges today. This could reduce the amount of available ETH for active trading.

Meanwhile, the Binance PoR data shows different movements across major stablecoins. USDT balances moved lower.

USDC excess reserves moved higher. This difference shows that users might have changed how they hold stablecoins on the platform.

Bitcoin balances recorded the strongest rise. Users added 23,768 BTC between November 1 and December 1.

Bitcoin remains the largest asset in user balances on Binance. The rise signals a shift toward BTC during the period.

The PoR report also highlights backing ratios. These ratios show the level of assets held by the exchange.

Tokens such as BTC, ETH, USDT, and BNB show backing above 100%. A ratio above 100% means the exchange holds more assets than user deposits for those tokens.

Notably, the reserves come from Binance wallets and funds held by third-party custodians.

The update does not give the full financial position of the exchange. It only shows user balances at a fixed point in time.

Market Takeaways From the Changes in the Latest Report

It is important to add that the new Binance PoR gives a look into how users moved assets in December.

The drop in user ETH and USDT balances could show that users moved these assets to private wallets or other platforms.

Notably, the rise in BTC holdings shows that users may have increased their Bitcoin exposure.

The fall in excess ETH and SOL reserves could shape short-term liquidity for those altcoins.

The higher excess USDC balance shows stronger activity in that stablecoin. These changes might guide trading behavior on the exchange.

Binance PoR continues to serve as a reference point for tracking user balances.

The December report shows how assets shifted across the month and how user decisions shaped the final figures.