Binance's Ethereum reserves drop to lowest level since 2021

November 15 - CryptoQuant analyst Darkfost pointed out in a post that Binance's Ethereum reserves have dropped to a low not seen since 2021. Currently, Binance's ETH holdings are estimated at approximately 2.9 million coins, marking a near five-year low.

The significant decline in reserves indicates that as ETH prices continue to fall, many investors may be choosing to accumulate ETH on dips and moving assets off trading platforms for self-custody or to participate in yield-generating DeFi strategies, waiting for more favorable market conditions.

This trend is also reflected in Binance's Ethereum net flow data. Calculated on a 30-day moving average (30DMA), Binance ETH net flow has been in negative territory for most of the past period, indicating that outflows continue to exceed inflows. The sustained net outflow trend further supports the assessment that investors are accumulating ETH, but exchange asset outflows alone are not sufficient to confirm that investors are increasing their holdings.

In the long term, if exchange ETH reserves continue to decline, the amount of ETH readily available for sale in the market may decrease accordingly. If demand begins to recover in the future, this could create a more favorable supply environment.