Binance’s Reserve SituationBinance experienced one of its most turbulent times in 2023, with lawsuits and regulatory reviews negatively impacting its operations. Despite these challenges, recent data indicates that Binance is in a better condition than initially perceived.When examining Binance Reserves’ 7-day declines, more stable trends are apparent. Smaller declines suggest routine customer deposit and withdrawal transactions. Unlike FTX, Binance did not exhibit the same magnitude of challenges in reserve management, as reflected in the 30-Day Reserve Decline. Binance’s volume-reserve ratio (VRR) score also indicates a decrease in risk for the exchange, suggesting a more balanced relationship between trading volume and reserves.This situation contrasts with FTX, which experienced periods of high risk leading to its collapse. The open interest reserve ratio (ORR) score, valid for derivative exchanges, reveals that Binance’s performance in this measurement was more stable compared to FTX, which suffered significant declines in the months leading up to and following its collapse.
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