Cryptocurrency exchange Bybit has released its latest Proof of Reserve Report. This reveals a significant change in the composition of user assets. A snapshot dated December 17 shows low holdings in Bitcoin and Ethereum. Meanwhile, stablecoin balances have increased rapidly. This data comes from Bybit's reserves disclosure on the 29th. Compare user assets with on-chain wallet balances to ensure full backing.
Bitcoin and Ethereum balances are on the decline
According to the report, the amount of Bitcoin held by users is approximately 63,200 BTC. It recorded a decline of 5.49% on November 19th. On an absolute basis, users' BTC balances decreased by approximately 3,674 BTC during the period. Ethereum holdings followed a similar pattern. User balance decreased to approximately 536,800 Ethereum, a decrease of 6.67% month-on-month.
Bybit has released its 29th Proof of Reserves report (snapshot date: December 17th). Users' BTC holdings were approximately 63,000 BTC, a decrease of 5.49% (3,674 BTC decrease) from the previous snapshot on November 19th. The amount of ETH held by users was approximately 537,000 ETH, a decrease of 6.67% (down 38,361 ETH). User USDT… pic.twitter.com/lXjHSYCE8T
— Wu Blockchain (@WuBlockchain) December 25, 2025
This equates to a savings of over 38,000 ETH. This decline suggests that some users reduced their exposure to major cryptocurrencies in December. Market participants often rebalance their holdings near the end of the year, especially during periods of low volatility or consolidation.
Stablecoin Holdings achieves strong growth
While BTC and ETH fell, stablecoins moved in the opposite direction. Tether held by users has increased to approximately 6.05 billion USDT. This was an increase of approximately 8.13% or approximately 455 million USDT compared to the previous snapshot. Another stablecoin, USDE, also saw growth. User balances increased by more than 15% to approximately 472 million units. An increase in stablecoin holdings indicates that users are in a more defensive position. Such changes are common when traders reduce directional risk. Holding stablecoins allows users to maintain liquidity while waiting for clearer market signals.
Deposit reserve ratio maintained at over 100%
Despite the change in asset mix, Bybit reported a reserve ratio of over 100% across its major tokens. This means that exchanges hold more assets in their wallets than users collectively own. In the case of Bitcoin, the reserve ratio was approximately 103%. Ethereum and USDT reserves also crossed the 100% threshold. Some altcoins showed even higher coverage, with some reaching reserve ratios of over 120%. Bybit said users can compare on-chain wallet data with reported user balances. This transparency is aimed at reassuring customers following industry-wide scrutiny of exchanges' solvency.
What the data suggests about user behavior
December's report highlights a shift in sentiment, not stress. There were no sudden withdrawals or signs of insufficient reserves. Instead, the data show a gradual reallocation. The low balances of BTC and ETH suggest that they are less affected by price fluctuations. On the other hand, the increase in stablecoin holdings indicates vigilance and capital conservation. As the market moves into the new year, user behavior may change again. A lot depends on the macro environment, liquidity, and broader crypto market momentum. Now, Bybit's latest disclosure shows stable reserves and a clear trend towards stablecoins. The exchange's next report will indicate whether this position will be maintained until early 2026.
