Binance: Latest Proof-of-Reserve report paints a bleak picture for the exchange

Binance was at the forefront of the call for POR when the FTX crash happened. Its latest report has, however, shown a decline in user deposits.



  • Binance’s latest POR showed an increase in exchange net balances.
  • BNB has been trading at a loss in the past two days. 

After the FTX crash, Binance, under the leadership of its CEO, spearheaded the initiative for regular Proof of Reserve from cryptocurrency exchanges. The exchange has issued its latest Proof of Reserve (POR) report, demonstrating the platform’s liquidity. What does the latest POR say about the exchange?

Read Binance Coin (BNB) Price Prediction 2023-24

Binance user deposits decrease

The recent update of Binance’s Proof-of-Reserve (POR) revealed significant liquidity on the exchange. The data indicated that the exchange’s net asset balance surpassed its users. Among the stablecoins, USDT dominated the exchange’s and its users’ net balance.

However, a decline in user balances was evident upon comparing the current POR with the previous month’s data. Specifically, BTC deposits decreased by 0.6%, resulting in a reduction of 3,835 BTC.

Additionally, user balances for ETH and BNB decreased by 2.3% and 1.4%, respectively, reducing 95,000 ETH and 423,000 BNB. Furthermore, USDT holdings decreased by 1.2%, causing a reduction of 197 million USDT.

Binance shows varying on-chain metrics

Examining the activities on the Binance Chain revealed distinct trends in its Total Value Locked (TVL), number of users, and volume. According to DefiLlama’s analysis, the TVL experienced an upward trend at the beginning of the year, surging to over $5 billion before gradually declining since June. At present, TVL stands at approximately $3.2 billion.

Source: DefiLlama

In contrast, the number of users displayed a reverse trend compared to the TVL. Starting the year with around 700,000 users, it has steadily increased, surpassing 1 million users at the current time.

The trading volume stood at over $155 million, with the chart indicating significant fluctuations and oscillations.

BNB remains bearish

Based on the daily timeframe chart, Binance Coin’s (BNB) price trend has been relatively stagnant in recent weeks. At the time of writing, it was experiencing losses and continued the downward movement observed in the previous trading session.

Realistic or not, here’s BNB’s market cap in BTC terms

The current price was hovering around $242, with significant support provided by its short Moving Average (yellow line).

Furthermore, the Relative Strength Index (RSI) indicated that BNB has been unable to break out of its bearish trend. The RSI was slightly below the neutral line at the time of writing, suggesting that the market sentiment was leaning toward the bearish side.

Source: TradingView