- Bybit’s 40th proof-of-reserves report shows $19.6 billion in covered assets across major cryptocurrencies.
- User Bitcoin and Ethereum balances increased, signaling continued accumulation by exchange users.
- Tether (USDT) holdings on the platform fell 11.46%, marking a notable shift in stablecoin composition.
- Bitcoin trades near $83,725.79, while Ethereum changes hands around $2,713.96 as of today.
Bybit has published its 40th proof-of-reserves report, disclosing roughly $19.6 billion in covered assets. The periodic attestation is designed to give users visibility into whether the exchange holds sufficient reserves to back customer deposits. The latest edition shows a clear divergence in user behavior: Bitcoin and Ethereum balances moved higher, while Tether’s USDT holdings declined by 11.46%.
What the Reserve Data Shows
Proof-of-reserves reports have become a standard transparency tool for major crypto exchanges since the collapse of several industry players in 2022. Bybit’s 40th edition continues that cadence, offering a snapshot of aggregate user balances and the assets held against them. The headline figure of $19.6 billion in covered assets places the exchange among the larger platforms publishing regular attestations. The composition shift is the more interesting detail. A rise in BTC and ETH user balances suggests traders are either depositing more of those assets or converting stablecoin holdings into the two largest cryptocurrencies by market capitalization. Bitcoin’s price near $83,725.79 and Ethereum’s level around $2,713.96 give context to that rotation, though the report itself does not break out the dollar value of each asset.
Why the USDT Decline Matters
The 11.46% drop in USDT balances is significant because Tether remains the dominant stablecoin by trading volume. A decline on a single exchange can reflect several things: users withdrawing stablecoins to self-custody, moving them to other venues, or swapping into Bitcoin and Ethereum. The simultaneous increase in BTC and ETH balances points toward the latter interpretation, at least in part. Stablecoin flows are closely watched because they often signal risk appetite. When traders hold more USDT, they are typically positioned to buy dips or wait on the sidelines. When stablecoin balances fall while major crypto balances rise, it can indicate that capital is being put to work in the market rather than parked.
Transparency and Its Limits
Proof-of-reserves reports are not a complete picture of an exchange’s financial health. They typically cover customer-facing liabilities and the assets backing them, but they do not capture the full balance sheet, including derivatives exposure, loans, or off-chain obligations. Bybit’s report covers the assets it designates as covered, and the $19.6 billion figure should be read within that scope. That said, the regular publication of these reports has become a competitive feature among exchanges. Users increasingly expect some form of attestation, and platforms that publish on a consistent schedule tend to be viewed more favorably than those that do not.
What to Watch Next
The next proof-of-reserves report will show whether the shift away from USDT and toward BTC and ETH continues or reverses. If Bitcoin holds above the $83,000 area and Ethereum stays near $2,700, the incentive to hold those assets rather than stablecoins may persist. Conversely, a sharp market drawdown could send traders back into USDT as a defensive position. For now, the data points to a user base that is leaning slightly more toward the two largest cryptocurrencies and slightly less toward the largest stablecoin. That is a modest but notable change in positioning, and it will be worth tracking in subsequent reports.
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