Analyzing Binance’s POR, adoption of FDUSD, and BSC transaction trends

• Ethereum and BTC balances on Binance were reduced from their previous POR level.
• FDUSD makes its entry into Binances’s POR.

As customary of Binance, it recently released its Proof-of-Reserve (POR), taking stock of the assets on the exchange. However, one thing could be noticed in the exchange’s recent POR: the direction of its stablecoins has changed.

Analyzing the Binance and Ethereum reserve 

As of this writing, the customer net balance of Bitcoin on Binance stood at over 588,000, while the exchange balance was over 618,000. Compared to the figures reported in the previous POR, there has been little change in customer user balances. However, there has been a slight decrease in the exchange balance. The exchange balance was recorded at over 621,000 BTCs in the last POR. Overall, the BTC ratio remained at 105%.

Additionally, the customer net balance for Ethereum was over 3.8 million, with the exchange net balance exceeding 4 million. Similar to the BTC balances, the ETH balances have witnessed a decrease. The customer’s net balance was over 4 million in the last POR. However, it’s worth mentioning that the ratio had increased from 102% in the previous report to its current level of 105%.

Binance sees new entrant

Paxos Trust Company, the entity responsible for minting Binance’s stablecoin BUSD, terminated its association with Binance and ceased issuing BUSD on 21 February. This decision came in response to a consumer alert from the New York Department of Financial Services (NYDFS), which instructed Paxos, based in New York, to cease minting BUSD. Consequently, Binance has adopted another stablecoin, which debuted in the POR.

Reviewing the POR revealed that Binance and its users now held balances of First Digital USD (FDUSD). As of this writing, the customer net balance exceeded 196 million, while the exchange net balance surpassed 230 million, resulting in a ratio of 116%. However, it was worth noting that the net and exchange balances for FDUSD remain lower when compared to leading stablecoins such as USDT and USDC.

For instance, as of this writing, the USDT customer net balance exceeded 15.4 billion, with the exchange net balance at 18.2 billion. Furthermore, both customer and exchange net balances for USDT and USDC exceeded 1 billion.

How BSC has fared so far

Binance recently faced some FUD and the recent developments involving some of its executives have only contributed to this atmosphere. These developments might not be directly related, but there has been a noticeable decline in the number of transactions on the Binance Smart Chain recently.

As of 1 September, data from DefiLlama indicated over 3 million transactions on the Binance Smart Chain. However, as of writing, the number of transactions decreased to approximately 2.8 million.

Interestingly, despite the decrease in transaction volume, the Total Value Locked (TVL) on the Binance Smart Chain experienced a slight increase. As of this writing, the TVL was around $2.9 billion.