Why 26.5 Billion XRP Tokens Are Now Sitting at a Loss Despite a $2 Price Tag

Why It Matters

The loss‑laden supply signals short‑term price pressure for XRP, but the continued institutional interest and Ripple’s strengthened ecosystem could support a rebound, making the token’s trajectory pivotal for crypto investors and the broader digital‑asset market.

Summary

XRP’s market health has deteriorated, with Glassnode reporting that only 58.5% of its circulating supply is in profit – the lowest since November 2024 – leaving roughly 26.5 billion tokens (41.5% of supply) at a realized loss despite the token trading around $2.15. Profit‑taking by long‑term holders has surged 240% since September, while futures open interest has collapsed from near $10 billion to $3.8 billion, indicating waning speculative demand. Nonetheless, Ripple’s fundamentals remain solid, highlighted by a settlement with the SEC, a $500 million capital raise, strategic acquisitions, and the launch of several spot XRP ETFs that have attracted nearly $278 million in inflows, suggesting potential upside.