Binance Ethereum reserves shrink to their lowest level in six months

According to his latest analysis, Binance’s ETH holdings dropped from 3.57 million to 3.47 million tokens within three days, 36Crypto reported.

The decline coincided with widespread cryptocurrency losses, as Ethereum shed 11% and its market capitalization fell by $38 billion. Meanwhile, the broader altcoin market lost more than $110 billion, reflecting substantial selling pressure across major digital assets.

CryptoQuant data shows that Binance held approximately 3.92 million ETH in August before reserves began declining throughout September. By October, holdings had fallen to 3.47 million ETH, representing an 11.5% reduction from their August peak.

This movement removed approximately 450,000 ETH from Binance’s reserves, bringing exchange holdings to their lowest level in six months. Significantly, withdrawal activity increased during the correction, with investors transferring Ethereum away from Binance despite falling market prices.

The second CryptoQuant chart recorded more than 320,000 Ethereum withdrawal transactions on October 6, marking the highest historical reading. Previous withdrawal spikes occurred during the 2021 cryptocurrency rally, although those figures remained below the latest recorded level.

Darkfost linked the elevated activity to investors potentially seeking longer holding periods and opportunities to deploy their Ethereum elsewhere. According to the analyst, some holders may prefer self-custody arrangements while waiting for more favorable market conditions.

The analysis also identified staking and other yield-generating activities as possible destinations for Ethereum withdrawn from the exchange. Meanwhile, the withdrawal transaction indicator measures transfer frequency rather than the total quantity of Ethereum leaving Binance.

The charts also show that withdrawal activity increased while Ethereum prices declined across the broader cryptocurrency market. Binance’s Ethereum reserves reached their lowest level in six months as withdrawal transactions exceeded 320,000 on October 6.