Ethereum Reserves on Binance Hit Six-Month Low as Withdrawals Reach Record High

CryptoQuant analyst Darkfost has revealed that Ethereum reserves on Binance have reached a six-month low, while withdrawal transactions recorded unprecedented levels. According to his latest analysis, Binance’s ETH holdings dropped from 3.57 million to 3.47 million tokens within three days.

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.

Also Read: Kishu Inu Creator Indicted Over Alleged $9 Million Crypto Rug Pull Scheme

Binance ETH Reserves Decline as Withdrawal Transactions Hit Record Levels

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.

Ethereum Withdrawals Increase Amid Broader Market Correction

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The analysis also identified staking and other yield-generating activities as possible destinations for Ethereum withdrawn from the exchange.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.

Also Read: Cardano Midnight Transactions Explode 9,117% Following Smart Contract Launch