The share of XRP supply in profit has hit its lowest level in a year, signaling structural weakness and rising concern among investors as nearly half of the tokens remain at a loss.
A sharp decline in XRP profit supply signals heightened risk for the digital asset’s investors.
The share of XRP currently in profit has fallen to 58.5%, a figure not seen since November 2024.
XRP trades at $2.15, nearly four times its level from a year prior, but 41.5% of the circulating supply—about 26.5 billion tokens—now sits in loss conditions .
This data, published via X by on-chain analytics platform Glassnode, highlights mounting structural concerns for XRP holders.
“Despite prices being much higher than last year, a significant chunk of XRP holders are seeing losses. This is a clear sign that the market is dominated by late buyers," their post reports .
Latecomers appear to be driving market fragility, as many acquired XRP at recent cycle peaks.
Top-Heavy Distribution and Investor Anxiety
XRP investors face a precarious situation. The volume of underwater supply suggests top-heavy market positioning, with a notable concentration of tokens purchased at relatively high prices.
According to Glassnode’s report, "Over 41% of XRP's supply is currently underwater, at a loss for their holders" .
Such conditions foster anxiety, as swift price drops could trigger rapid liquidations among recent buyers.
Analysts cite these dynamics as a reason to question the sustainability of XRP’s short-term rallies.
Losses remain widespread even with elevated valuation, illustrating a disconnection between recent price gains and genuine investor profitability.
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Late Buyers Drive Structural Fragility
XRP’s market structure appears increasingly fragile, with many investors entering during bullish peaks.
The latest figures point to a significant imbalance: "Despite XRP trading around $2.15, the largest share of tokens in loss since November 2024 is now evident," Glassnode's post noted .
This top-heavy environment introduces risks of extended selling pressure should sentiment weaken further.
Nearly half the market, sitting at a loss, faces heightened sensitivity to price fluctuations.
Without a substantial influx of new buyers willing to absorb supply, volatility may increase and liquidity could thin rapidly.
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XRP Profitability Plummets as Market Fragility Grows
XRP’s in-profit supply drops to a one-year low, revealing increased market fragility as late buyers face mounting losses.