As Bitcoin balances continue their prolonged decline on the exchange, Ethereum deposits are steadily increasing. This contrast illustrates two competing asset narratives, suggesting traders might be shifting their focus to altcoins.
Summary
- OKX releases its 34th proof-of-reserves, confirming $33.7 billion in fully backed assets.
- Bitcoin balances are decreasing on the exchange, while Ethereum deposits are on the rise.
- XRP, Dogecoin, Solana, and major stablecoins show robust backing exceeding 100%.
On August 29, crypto exchange OKX released its 34th consecutive monthly proof-of-reserves, substantiating that it holds all user assets with a significant surplus. The audit, dated August 18, verifies the platform safeguards $33.7 billion in primary user assets, with Bitcoin (BTC), Ethereum (ETH), and major stablecoins all backed beyond 100%.
However, beneath the headline solvency statistics lies a more significant trend: a continuous migration of user capital that is altering the exchange’s balance sheet in real-time.
A deep dive into the data and its implications
The figures from the August snapshot are impressive in their consistency yet illuminating in their specifics. Bitcoin, still the largest single holding on OKX, demonstrated a 106% reserve ratio, meaning the exchange holds more BTC than what its users have on the platform. Despite this, balances have been steadily declining for several months.
In May, user-held Bitcoin was over 125,000 coins. By late July, that number dipped below 117,000, and the latest figures indicate just over 115,000 remain on the exchange. In contrast, Ethereum has moved in the opposite direction. With a 104% backing ratio, deposits exceeded 1.7 million ETH, marking a consistent inflow that sharply contrasts with Bitcoin’s gradual decline.
Last month, an OKX representative informed crypto.news that this divergence stems from user behavior rather than liquidity issues. More Bitcoin holders are opting to transfer their coins into cold storage or staking products, essentially withdrawing from exchange balances.
Conversely, Ethereum is experiencing inflows as traders capitalize on its on-chain activity and staking advantages. The proof-of-reserves data captures this shift in real-time, illustrating a trend where investors are not abandoning exchanges entirely but are moving away from one asset in favor of another.
Rotation into altcoins?
This reshuffle is not limited to the two largest cryptocurrencies. XRP displayed the highest ratio of any major token in the report, with 107% of user deposits backed by exchange assets.
The total wallet assets for XRP exceeded 274 million, indicating that traders are not only maintaining positions in XRP but also increasing their investments. Dogecoin and Solana also exhibited cushions above 100%, with DOGE balances surpassing 5.6 billion coins and SOL holdings nearing 6.7 million.
Stablecoins followed a similar trend. Tether recorded a 105% reserve ratio, with wallet assets exceeding $10.1 billion, while USD Coin was pegged precisely at 100%, showcasing OKX’s accuracy in matching liabilities with reserves.
