Analyst: Binance ETH Reserves Drop to Lowest Since 2021, Down About 42% Over the Past Year and a Half

Odaily reports: Crypto analyst Darkfost posted that Binance's ETH reserves have fallen to about 2.9 million, hitting a new low since 2021. In July 2025, Binance's ETH reserves were still over 5 million, when ETH price was close to $5,000; since then, ETH price has retraced over 63%, while Binance's ETH reserves have decreased by nearly 42% over the same period.

Darkfost noted that the continued decline in exchange reserves may mean some investors are accumulating ETH during the price pullback and transferring assets to personal wallets or using them for DeFi yield strategies. Binance's 30-day moving average net flow has also mostly been in negative territory over the past period, indicating that ETH outflows have consistently exceeded inflows. However, exchange withdrawals do not directly prove that investors are accumulating. In the long term, if exchange reserves continue to decline, the amount of ETH readily available for sale in the market may shrink, creating a more favorable supply-demand environment when demand recovers.