XRP’s profitability has fallen to its lowest level in a year, raising concerns that the token could face deeper losses if investors choose to exit their positions. Analysts warn that with a large portion of supply currently underwater, XRP may remain vulnerable unless it stages a strong recovery soon.
According to data shared by Glassnode on Monday, the “XRP supply in profit” has dropped to levels last seen in November 2024, when XRP traded near $0.53. Despite today’s price of roughly $2.15, the firm noted that 41.5% of the circulating supply—around 26.5 billion XRP—is sitting at a loss.
Glassnode described this as evidence of a “top-heavy and structurally fragile market,” dominated by investors who bought late into the rally.
Large Unrealized Losses Pressure Sentiment
Tony Sycamore, market analyst at IG Australia, told Cointelegraph that many XRP holders were likely caught off guard by the recent decline. With a significant number of investors entering when XRP traded above $3.00 earlier this year, their positions now sit well below breakeven.
Sycamore added that the 40%+ drop from the July high of $3.66 has hurt both long-term holders expecting steady gains and newer buyers who entered on FOMO during the peak.
This concentration of unrealized losses is now weighing on sentiment and increases the risk of forced selling, he said. A meaningful recovery would require XRP to reclaim levels above $2.70.
Can ETFs Revive the XRP Market?
Some investors hope that new XRP exchange-traded funds (ETFs) will help restore bullish momentum. Last Thursday, Canary Capital launched the first spot-XRP ETF, marking the strongest first-day performance for any U.S. ETF in 2025.
Four more ETFs—from Franklin Templeton, Bitwise, 21Shares, and CoinShares—are expected to debut this week.
However, XRP has yet to show a rebound. The token trades around $2.14, down more than 40% from its all-time high of $3.65 reached on July 18.
