Binance proof of reserves: ETH jumps 10%, USDT drops $460M

Binance’s 43rd proof of reserves report, based on a June 1 snapshot of user asset balances, shows a clear rotation away from stablecoins and toward core crypto assets — with Bitcoin and Ethereum holdings both climbing meaningfully over May.

Key takeaways

• Binance published its 43rd proof of reserves report using a June 1 snapshot date.
• User BTC holdings rose by 25,838 BTC in May, reaching approximately 630,000 BTC total.
• ETH balances grew faster, up 10.17% to about 4.14 million ETH, an increase of 382,619 ETH.
• USDT user holdings declined by roughly 460 million USDT, a drop of 1.33%.
• Proof of reserves shows on-chain asset backing at a point in time, but does not capture full exchange liabilities or explain user behavior.

Binance publishes its 43rd proof of reserves report

The June edition marks the 43rd consecutive proof of reserves release from the exchange, a practice that became standard in the industry following the collapse of FTX and a broader push for greater transparency around exchange-held customer funds. Binance frames the reports as evidence that user assets are backed on-chain at a 1:1 ratio, with additional reserves held on top.

The methodology relies on snapshots rather than live balance sheet data. Binance also uses zero-knowledge proofs to improve verification while maintaining user privacy — an approach the exchange has highlighted as an upgrade over simpler wallet attestations used elsewhere.

What these reports can and cannot show matters. They confirm asset backing at a specific moment, but they do not cover off-chain obligations, liabilities, or the motivations behind individual balance changes. That context is worth keeping in mind when reading the numbers below.

User Bitcoin and Ethereum holdings increase significantly

The headline numbers from the June 1 snapshot point in the same direction for BTC and ETH: both rose.

BTC holdings rise by 25,838 BTC to about 630,000 BTC

User Bitcoin balances on Binance grew by 25,838 BTC over May, bringing total reported holdings to approximately 630,000 BTC — a 4.26% increase month-on-month. That is a meaningful addition in absolute terms, though the snapshot does not specify whether the growth came from fresh deposits, internal product transfers, purchases made on the platform, or some combination of all three.

ETH holdings grow 10.17% to about 4.14 million ETH

Ethereum balances moved even faster. User ETH holdings climbed 10.17% to roughly 4.14 million ETH, adding approximately 382,619 ETH over the same period. That outpaced Bitcoin’s percentage gain by a wide margin, suggesting ETH saw either stronger inflows or less outgoing activity on Binance during May.

Together, the BTC and ETH increases represent a notable shift in what Binance users are holding — at least as captured at the June 1 snapshot date.

USDT user holdings decline amid mixed asset trends

Decrease of approximately 460 million USDT, down 1.33%

While Bitcoin and Ethereum balances moved higher, USDT holdings fell. Binance reported total user USDT balances of around 34.3 billion USDT as of June 1, down 1.33% from May 1 — a decline of roughly 460 million USDT.

The direction of that move is interesting set against the BTC and ETH gains. One possible reading is that some users rotated out of stablecoins and into crypto assets during May, a pattern that would align with broader market activity in the period. But the snapshot cannot confirm that interpretation. Withdrawals, product movements, and trading activity all look identical in the data.

What the stablecoin drop does and does not tell us

A decline in USDT balances on a major exchange can mean many things: users spending stablecoins to buy crypto, withdrawing funds off-platform, shifting to other stablecoin products, or simply moving balances internally. The report does not distinguish between any of these. The data point stands on its own — direction confirmed, cause unknown.

Limitations and implications of proof of reserves data

Proof of reserves reports serve a real purpose, but they have well-documented limits that matter for anyone trying to read them as a health check on an exchange.

The snapshot model means the figures capture one moment in time. Real balances move continuously, and a June 1 snapshot may not reflect what the exchange held on June 15 or what it will hold at the end of the month. More importantly, proof of reserves does not show liabilities. An exchange could hold all user assets 1:1 on-chain and still carry significant off-chain obligations that a reserves report would not reveal.

Binance’s previous reports have shown over 100% backing for BTC, ETH, and USDT, meaning reserves exceeded reported user liabilities at those snapshot dates. That is a positive signal, but it still represents a partial picture of overall exchange health rather than a comprehensive audit.

For traders and institutional participants who watch exchange reserve reports closely, the June snapshot offers one clear takeaway: Binance users held more BTC and ETH and less USDT at the start of June than they did at the start of May. Whether that reflects confidence in the market, tactical positioning, or routine account activity is a question the data alone cannot answer.

FAQ

What does Binance’s proof of reserves report show?

It shows a snapshot of user asset balances to demonstrate that funds are backed on-chain, with Binance maintaining reserves at or above a 1:1 ratio. It does not include full exchange liabilities, off-chain obligations, or an explanation of user behavior behind balance changes.

How much did user Bitcoin holdings increase on Binance in May 2026?

User BTC holdings increased by 25,838 BTC over May, reaching approximately 630,000 BTC in total as of the June 1 snapshot.

Did Ethereum holdings on Binance change in the latest report?

Yes. ETH holdings rose by 10.17%, adding approximately 382,619 ETH to bring the total to about 4.14 million ETH — the largest percentage gain among the three major assets tracked.

What happened to USDT holdings on Binance according to the report?

USDT user balances declined by roughly 460 million USDT, a 1.33% decrease, bringing total reported USDT holdings to approximately 34.3 billion USDT as of June 1.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.