Binance Unfolds SHIB, XRP, & DOGE Stash in New Reserve Update

From Shiba Inu to XRP: digging deeper into Binance’s impressive crypto reserve portfolio.

Squirrel working for binance is topping up reserves with Shib token, Doge and XRP.
Created by Kornelija Poderskytė from DailyCoin
  • Crypto titan Binance unravels its Proof of Reserves (PoR) for February.
  • Dogecoin, Shiba Inu & XRP are among the most traded tokens on the CEX.
  • Periodical PoR audits are crucial for adequate liquidity amid price volatility.

At the beginning of February, the leading crypto exchange globally released the freshest Proof of Reserves (PoR) statement to the public. This time, the reserve audit has brought attention to the fact that some popular cryptocurrencies, like Shiba Inu (SHIB), have outweighed the leading asset, Bitcoin (BTC), by ratio.

The ratio of Proof of Reserves indicates the balance between Binance’s on-chain holdings and the crypto held in custody for customers. In other words, the net balance ratio indicates which cryptocurrencies have been demanded by users more than others.

To illustrate, Binance holds 69,431,545,051,732.125 SHIB tokens in their treasury, while customer net balances encompass 66,995,801,414,557.41 SHIB. The 2.5T SHIB token difference represents the 103.64% ratio, which means that Binance’s SHIB hot wallets are topped up in case of excess demand.

Meanwhile, Binance’s Bitcoin stash consists of 609K Bitcoin (BTC), while customers are holding 594K Bitcoins in their balances. This situation depicts a ratio of 102.49%, affirming Binance’s tactics to guarantee adequate liquidity. Indeed, the over-the-top assets can assist in stabilizing market slumps caused by price fluctuations.

Unboxing the Underlying Implications of Binance’s PoR

Besides helping to navigate through the crypto winter, the roster of crypto reserves also implies that some altcoins are traded on the platform way more frequently than the others. For instance, 13.69% of all Dogecoin’s daily trade volume is garnered via Binance. In the last 24-hour time frame, Dogecoin (DOGE) generated $41,285,324.

With a ratio of 100.65%, Dogecoin’s reserves could be compared to Ripple’s XRP, which has a slightly higher digital asset reserve of 101.14%. With 17.88% of XRP daily trades happening on Binance, the marginally higher ratio implies that XRP is getting traction in retail trading, partly due to the highly publicized Ripple vs. SEC case.

Ultimately, the top exchange’s reserves align with the tendencies of the broader crypto markets, while the latest audit was conducted with the zk-SNARKs verification mechanism. The innovative cryptography method proves one’s possession of funds or certain concealed information without interacting with the verifier and the prover.

On the Flipside

  • Compared to the previous Proof of Reserves (PoR), the aforementioned digital assets saw a notable plunge.
  • For example, Dogecoin’s (DOGE) balance sheet is 259,000 DOGE short, while SHIB’s balance is 3.3T below.

Why This Matters

Proof of Reserves is crucial to establishing trust between crypto holders and platforms.

Explore DailyCoin’s trending cryptocurrency news:
Montenegro Revokes Do Kwon’s Extradition Approval
DOGE is Sending SpaceX to the Moon, Sets New Launch Date

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.