Key Takeaways
- Binance reported an almost 10% decline in user-held Ethereum compared to the previous month, a drop of nearly 496,000 ETH.
- Despite the decrease, Binance has reported a reserve ratio of 100.67% for ETH, confirming that all user deposits are fully backed.
- Bitcoin and USDT balances have both increased.
- While user-held ETH on Binance has decreased, institutional interest in Ethereum is rising.
On Thursday, August 7, Binance released its 33rd Proof of Reserves report, revealing a substantial decline in user-held Ethereum despite ETH becoming increasingly popular for corporate treasury strategies.
The report showed strong reserve backing across major assets, with notable increases in USDT and Bitcoin holdings.
Binance Reports ETH Decline
Binance reported a 9.84% drop in user ETH holdings compared to the previous month.
As of August 1, users collectively held 4.5 million ETH, down by approximately 496,000 ETH from July.
Despite this decline, Binance’s reserve ratio for ETH remains at 100.67%, meaning the exchange holds slightly more ETH than users have deposited.
This surplus confirms that Binance fully backs user ETH balances with an added buffer, an important indicator of solvency as centralized platforms face scrutiny.
Bitcoin and USDT Increase
Bitcoin remains the largest asset on the crypto exchange.
Binance users hold 591,163 BTC, worth roughly $67 billion.
The exchange’s BTC reserve stands at 608,639 BTC, valued at about $70 billion, resulting in a collateralization ratio of 102.96%.
This is up from July, when users held 573,996 BTC and Binance held 588,385 BTC in reserve.
USDT holdings, the second-largest held asset on the exchange, have also reportedly increased.
Binance now holds 30.55 billion USDT against 29.855 billion in user deposits, giving a holding ratio of 102.27%.
The previous month’s USDT ratio was 101.11%.
Corporate Bets on Ethereum
Over the past two months, more companies across different industries have been adding Ethereum to their treasuries.
BitMine Immersion, previously a Bitcoin-focused mining firm, is the most prominent example.
On August 5, it was reported that BitMine purchased another 208,137 ETH over the previous week, bringing its total ETH holdings to over $3 billion.
This further extends BitMine’s lead as the largest corporate ETH holder, followed by SharpLink Gaming.
On the same day, SharpLink announced it had acquired 83,561 ETH for $264.5 million at an average price of $3,634, with the purchases taking place between July 28 and August 3.
The move brings SharpLink’s ETH treasury close to the $2 billion mark.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
