Kucoin’s September Asset Reserve Report 9-29

by

Major cryptocurrency exchange Kucoin has recently released its asset reserve report for September 29, 2022, revealing significant declines in Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) balances compared to the previous month. This report sheds light on the evolving dynamics within the crypto space, including users’ behaviors, market trends, and the impact of the ongoing “crypto winter.”

It released the latest (9-29) asset reserve certificate. The user’s BTC assets were 17,617.5, a decrease of 4% from the last time (8-31); the user’s ETH assets were 148,125, a decrease of 3%; the user’s USDT assets were 837 million, 4% lower than last time.

Bitcoin Reserves Down 4%

In the latest report, Kucoin disclosed that it held 17,617.5 BTC on behalf of its users as of September 29, marking a 4% decrease from the 17,317.5 BTC reported in Kucoin’s August 31 reserve update. This decline in Bitcoin reserves suggests that some users have chosen to withdraw their BTC holdings from the exchange in the past month.

Ethereum Reserves Also Decline Kucoin

Ethereum reserves on Kucoin followed a similar pattern, with a total of 148,125 ETH in September compared to 153,125 ETH at the end of August. This equates to a 3% month-over-month decrease in the total ETH held for users. The diminishing ETH balance indicates that Ethereum has also been flowing out of Kucoin.

Tether Reserves See Steepest Fall

Among the assets covered in the report, Tether (USDT) experienced the most significant decline. Kucoin’s USDT reserves decreased from 872 million USDT in August to 837 million USDT in September, marking a 4% drop. This reduction in USDT reserves signifies that users have been withdrawing stablecoins from their Kucoin accounts over the past month.

Defillama Data Shows $118M Outflow

Providing further context, blockchain analytics firm Defillama has been tracking Kucoin’s net outflow of approximately $118 million worth of cryptocurrencies over the past 30 days. This outflow surpassed any new deposits received during the same period, indicating a significant shift in user behavior.

Bitcoin Balance Shrinks 4%
The report states Kucoin held 17,617.5 BTC in reserves for user accounts as of September 29th. This is down from the 17,317.5 BTC reported in Kucoin’s August 31st update, representing a 4% month-over-month decrease.
To put this in context, the 17,617.5 BTC balance is the lowest figure Kucoin has reported since at least August 2022. It suggests a portion of users withdrew their Bitcoin from the exchange in September. The shrinking reserves may reflect weaker market sentiment amid ongoing crypto price declines.
Ethereum Reserves Also Decline Ethereum reserves followed a similar trend, with the exchange reporting 148,125 ETH held for users at the end of September. This is a 3% reduction from the 153,125 ETH reported on August 31st.
Like Bitcoin, the lower ETH balance points to outflows exceeding inflows over the past month. Traders and investors appear to have withdrawn more Ethereum from Kucoin than deposited as prices fell.
Tether Reserves See Steepest Drop Of the three assets detailed, Tether saw the steepest percentage change. Kucoin held 837 million USDT in September, down 4% from the 872 million USDT balance a month prior.

Potential Reasons for Outflows

The declining reserve balances across various cryptocurrencies on Kucoin could be attributed to several factors. Firstly, users may be shifting their assets away from centralized exchanges in response to the prevailing crypto market weakness. With cryptocurrency prices facing downward pressure, some investors and traders are opting to store their coins in personal wallets to explore alternative avenues for generating higher yields, such as staking or lending.

Conclusion

Kucoin’s monthly asset reserve reports provide valuable transparency into the exchange’s backing of user deposits and offer insights into broader trends within the cryptocurrency market. The decline in Bitcoin, Ethereum, and Tether balances on Kucoin, along with the net outflows tracked by Defillama, suggest that users are actively repositioning their assets in response to the challenges posed by the current crypto market conditions. As these reports continue to be released, they will serve as a crucial resource for understanding how users are navigating the crypto landscape during these turbulent times.

Leave a Comment