Recent insights from Binance’s Proof of Reserves (PoR) report indicate a noticeable decline in the reserve ratios across several key cryptocurrencies. The reserve ratio for Bitcoin fell from 108.15% in January to 100.45% in February, while the Ethereum reserve ratio experienced a reduction from 104.2% to a critical 100%. Similarly, BNB saw its ratio decrease from 115.75% to 112.73% within the same period.
Contrastingly, USDC was the only mainstream asset to exhibit a marked increase in its reserve ratio, soaring from 132.32% to 141.28%. Analysts estimate a $5.489 billion decline in Binance’s proprietary assets as compared to January figures. Speculation within the cryptocurrency community suggests that these shifts may be linked to Binance’s activity surrounding its major assets. However, analysts, such as those at Shenyu Analysis, propose that this trend could be attributed to normal year-end profit-taking, reminiscent of past fluctuations seen in mid-2023 and early 2024.