XRP Profitability Hits New Low Despite Price Growth
- XRP’s supply in profit reaches 58.5%, lowest since Nov 2024.
- Despite price rise, 41.5% of XRP supply held at a loss.
- Market deemed “structurally fragile” by Glassnode analysts.
According to Glassnode, XRP’s circulating supply in profit has dropped to 58.5%, its lowest level since November 2024, despite current trading prices being around $2.15.
This decline suggests a structurally fragile market, with potential implications for XRP holders, as over 41% of the supply is currently held at a loss.
Glassnode reports XRP’s profitability decline, showing a significant shift despite rising prices. On-chain data indicates 58.5% supply in profit, marking the lowest since November 2024. Holders expressed concern due to the trend’s implications.
The analysis highlights 41.5% of XRP supply, translating to approximately 26.5 billion tokens, are currently held at a loss. This situation reveals a top-heavy market structure, according to Glassnode. Analysts emphasize the potential impact on the market.
“The share of XRP supply in profit has fallen to 58.5%, the lowest since Nov 2024, when price was $0.53. Today, despite trading ~4× higher ($2.15), 41.5% of supply (~26.5B XRP) sits in loss — a clear sign of a top-heavy and structurally fragile market dominated by late buyers.”
Current metrics suggest a structurally fragile market due to excessive holdings by late buyers. Profit-taking volumes, as noted by Glassnode, climbed significantly, reflecting broader market dynamics and distribution concerns. Such shifts can signal further market volatility.
While large asset managers plan spot XRP ETFs, uncertainty lingers as on-chain profitability remains low. Ripple leadership has not yet addressed these developments, leaving investors and analysts to interpret possible outcomes. Future financial impacts remain a focal point.
No recent statements from Ripple executives addressed the profitable supply decline. The broader market impact of these conditions could involve forced selling or panic-driven events. Analysts underscore that continued price declines might exacerbate investor losses.
Historical data suggest that profit collapses precede heightened volatility. Glassnode’s analysis aligns with past events where similar conditions prompted seller cascades. Observers note that BTC and major altcoins could also be affected. Investor sentiment remains cautious.
