XRP’s Profitability Woes Amidst Market Downturn and ETF Hopes

XRP is currently under significant pressure, with 41.5% of its circulating supply, approximately 26.5 billion tokens, sitting at a realized loss despite trading around $2.15. This marks the weakest profitability reading since late November 2024, primarily due to a concentration of trading volume at elevated price points earlier in the year, leaving recent buyers exposed. The token has seen a 12% drop in the past six months and is 40% below its July peak of $3.65.

Contributing to XRP’s struggles is a collapse in derivatives activity, with futures open interest plummeting from nearly $10 billion to $3.8 billion, indicating weakening speculative demand. Furthermore, long-term holders who acquired XRP below $1 are engaging in rapid profit-taking, with daily realizations surging 240% since September to around $220 million. Retail investors are also showing signs of capitulation, with small wallets selling 1.38% of their balances, a trend that can sometimes precede market rebounds.

Despite these short-term challenges, XRP boasts strong underlying fundamentals. Ripple successfully resolved its protracted dispute with the US SEC through a settlement following favorable rulings. The company’s strategic growth initiatives, including a $500 million raise, acquisitions of Palisade and Hidden Roads, and new partnerships, are bolstering its ecosystem. Institutional interest is on the rise, evidenced by the launch of several spot XRP ETFs in November 2025 by major players like Franklin Templeton and Bitwise, with Canary Capital’s XRPC ETF alone attracting nearly $278 million in early inflows. These developments, coupled with sustained social media engagement, suggest a potential for long-term recovery.

(Source: https://cryptoslate.com/why-26-5-billion-xrp-tokens-are-now-sitting-at-a-loss-despite-a-2-price-tag/)