Binance Has Maintained a Reserve Ratio Above 100% for 30 Consecutive Months

Binance, the world's largest cryptocurrency exchange by trading volume, has now maintained a reserve ratio above 100% for 30 consecutive months.

Binance, the world's largest cryptocurrency exchange by trading volume, has now maintained a reserve ratio above 100% for 30 consecutive months. This growth streak is confirmed in the latest snapshot at Bitcoin block 894,668.

As seen in the snapshot, Binance is holding 616,886 BTC to support a net customer balance of 604,410 BTC, rendering a reserve ratio of 102%.

The exchange’s proof-of-reserve (PoR) initiative began as a direct response to the collapse of FTX in November 2022, an event that revealed the exchange was struggling to maintain a 100% reserve ratio and had engaged in risky trading practices with user funds.

Since then, Binance has been publishing monthly attestations, which are later verified by on-chain experts and third-party auditors like Mazars.

In the latest analysis of the exchange’s PoR snapshot, CryptoQuant analyst Maarten highlighted the importance of the exchange’s performance over the past 30 months.

“Since the first Proof-of-Reserve report was published at the end of 2022, Binance has consistently maintained a reserve ratio above 100%. This demonstrates strong asset backing and a continued commitment to transparency,” the analyst wrote in a recent note.

Of the 616,886 BTC, Maarten revealed that 603,374 BTC are stored on-chain, while another 13,512 BTC are held by a third party on the BNB Smart Chain as BTCB.

Back in March, CryptoPotato noted that Binance’s reserve ratio had remained above 100% for 29 months, although at the time, the company was forced to deny rumors that it had been selling its BTC for USDC.

CryptoQuant’s analysis helped dispel those allegations, with the company stating that all figures provided by Binance matched on-chain data.

Moreover, previous independent audits have also validated the cryptocurrency exchange’s transparency claims. Last July, Mazars confirmed that Binance held 101% of customer BTC deposits, further attesting to the integrity of the Merkle tree-based PoR system.

Despite some industry figures, like Kraken CEO Jesse Powell, criticizing the reserve proof reports for not taking into account any liabilities, Binance’s stable reserve record has helped the company maintain market confidence.

This strength is also evident in the exchange’s stablecoin reserves. At the beginning of the year, the exchange stated that it held over $31 billion in stablecoins, nearly five times the amount from mid-2023, indicating strong liquidity and activity from institutional investors.

Meanwhile, the company’s native BNB token continues its steady upward trend. At the time of writing, the token has slightly increased by 1.3% in 24 hours, trading at just under $658 according to CoinGecko data.

Over the past week, it rose by 8.5%, performing worse than the broader cryptocurrency market, which saw a 12.4% increase in the same period. However, the 30 days prior saw BNB record an 11.4% increase.

Currently, the token is 16.5% below its all-time high, reached in March 2023.