Two major developments are highlighting a tightening grip on cryptocurrency supplies across major exchanges. Binance has released its latest Proof of Reserves (PoR) report, revealing that the exchange holds more than 100% of user balances for many altcoins – effectively stockpiling extra reserves. Simultaneously, data from CryptoQuant shows Bitcoin reserves on platforms like Binance, OKX, and Gemini have plunged to their lowest level in over two years, drastically reducing the tradable float of the world’s largest digital asset.
Binance’s over-collateralized altcoins
The monthly PoR report from Binance confirms the exchange maintains a reserve ratio exceeding 100% for Bitcoin and a broad list of altcoins. Among the most notable overages: First Digital USD (FDUSD) stood at a 107.15% reserve ratio, World Liberty Financial (WLFI) at 109.98%, and PancakeSwap (CAKE) at 109.13%. Stablecoin USDC was collateralized at 106.66%, while USDT had 104.27%. Other major tokens like BNB (101.68%), XRP (101.02%), and DOT (102.36%) also had comfortable buffers, underscoring Binance’s approach of holding some extra coins beyond its customer liabilities.
Bitcoin reserves hit multi-year lows
Separately, CryptoQuant data shows a synchronized decline in Bitcoin reserves across exchanges. From late February to early May 2026, three platforms – Binance, OKX, and Gemini – shed a combined 100,000 BTC. Binance alone saw 50,000 BTC ($4 billion) leave its wallets, while OKX lost 30,000 BTC ($2.4 billion) between March 2 and March 7, and Gemini’s reserves shrank by nearly 19,800 BTC. Total exchange reserves now sit at approximately 2.21 million BTC, the lowest level since early 2018.
Analyst Amr Taha from CryptoQuant emphasized that “a synchronized decline across multiple exchanges carries more weight than isolated outflows from a single exchange. Fewer coins on trading platforms can amplify the price reaction when strong spot demand returns.”
Where did the Bitcoin go?
The outflows reflect a structural shift in custody behavior. Much of the 100,000 BTC was moved to private hardware wallets, Bitcoin ETF custody addresses, and “accumulator wallets” – addresses that only add coins and never sell. CryptoQuant noted that the number of coins held in accumulator addresses jumped by 100,000 in just two weeks, indicating that long-term holders now control 78.3% of the BTC supply. This migration mirrors patterns seen after the FTX collapse in 2022, when investors prioritized self-custody and ETF solutions over exchange holdings.
Bullish echoes of 2020
CryptoQuant CEO Ki Young Ju drew parallels with late 2020, stating: “The structure we’re seeing – exchange BTC reserves at multi-year lows while large wallets continue absorbing supply off OTC desks – is reminiscent of Q4 2020.” That period preceded Bitcoin’s explosive rally from around $10,000 to $60,000. However, Julio Moreno, head of research at CryptoQuant, cautioned that a bear market could persist through Q3 2026 unless demand picks up significantly. Still, the shrinking float on exchanges is widely viewed as a bullish setup for when buyers eventually return.
