Binance, the world’s largest cryptocurrency exchange by trading volume, has revealed its eleventh proof of reserve report, which shows that it holds more than 2.6 billion XRP in user assets. The report, which verifies that Binance has enough funds to back up its customers’ deposits, was based on a snapshot taken on Oct. 1.

Binance releases its eleventh proof of reserve (snapshot date 10-1). Users’ BTC assets were 588k, an increase of 0.12% from a month ago; users’ ETH assets were 3.83 million, a decrease of 1.6%; users’ USDT assets were 15.31 billion, a decrease of 0.8%.https://t.co/jGCPnwd2PR

— Wu Blockchain (@WuBlockchain) October 5, 2023

According to the report, Binance held 2,629,459,187.625 XRP in customer net balances, which accounted for about 5.4% of the total XRP supply. The exchange also had an extra 4.15% reserve for its XRP deposits, bringing its total XRP holdings to 2,738,661,519.884 XRP.

The report also showed that Binance had 588,879 BTC, 3.83 million ETH, and 15.31 billion USDT in user assets as of Oct. 1. The exchange claimed that it had a collateral ratio of over 100% for all its supported cryptocurrencies, meaning that it had more funds than liabilities.

Binance’s Spot Trading Was Down Again

The proof of reserve report comes when Binance is facing regulatory scrutiny and competition from other exchanges. According to a detailed report from Bloomberg, Binance’s spot market share dropped for the seventh consecutive month in September, reaching 18%, down from 24% in August and 36% in February.

Despite losing market share, Binance remains the largest XRP market, with the XRP/USDT pair dominating the trading volume in the past 24 hours. According to CoinMarketCap, Binance handled over $762 million worth of XRP trades on the last day, followed by Bithumb and Coinbase.

XRP price action has been volatile recently, as the cryptocurrency surged by 8% to $0.548 on Oct. 3 before sliding back to $0.521 at the time of writing. XRP faces resistance at $0.56 and support at $0.511, as it tries to break out of a triangle pattern that has been forming since August.

XRP could potentially start its ascent towards the much-anticipated 0.66 level. However, if the price dips below $0.511, aligning with the 50-day moving average, we might see more sideways movement in the upcoming days.

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Filed under: News - @ October 6, 2023 2:15 pm