XRP Faces 41.5% Supply at Loss as Spot ETFs Prepare Market Debut

Glassnode reports 41.5% of XRP supply at loss, showing late buyers dominate a structurally fragile market after recent price fluctuations.

Profit realization surged 240% despite price weakness, reflecting increased distribution as XRP fell from $3.09 to $2.30 since late September.

Upcoming spot-XRP ETFs from Canary Capital, Franklin Templeton, Bitwise, 21Shares, and CoinShares may increase liquidity and market participation soon.

XRP is currently experiencing a high proportion of holders in loss, raising questions about market stability. Roughly 41.5% of XRP’s circulating supply remains at a loss despite recent price gains.

Rising Losses in XRP Supply

According to Glassnode, the share of XRP supply in profit has dropped to 58.5%, the lowest since November 2024. At that time, XRP traded near $0.53, far below current levels of approximately $2.15. The data indicates that late buyers dominate the market, creating a top-heavy structure.

Glassnode also noted that the recent market behavior differs from historical profit realization waves. Normally, profit realization aligns with rallies, but XRP’s decline from $3.09 to $2.30 since late September has driven unusually high profit-taking.

The 7-day moving average of profit realization volume surged by roughly 240%, rising from $65 million per day to $220 million per day. This pattern shows distribution occurring during weakness rather than during upward price movements.

Upcoming Spot-XRP ETFs

Market participants are closely watching the launch of new spot-XRP ETFs, which could affect sentiment. Canary Capital released the first US spot-XRP ETF on Thursday, marking one of the most successful first-day performances for ETFs this year.

Following this, Franklin Templeton, Bitwise, 21Shares, and CoinShares are expected to release additional spot-XRP ETFs in the coming days. These launches are generating interest, as traders anticipate increased liquidity and market participation.

Despite these ETF developments, XRP has yet to show a clear recovery in price. Currently trading at $2.14, XRP remains down more than 40% from its all-time high of $3.65 on July 18.

Market Observations and Trends

Glassnode data reflects a divergence between price action and profit realization, suggesting structural fragility in the XRP market. The presence of substantial supply at a loss demonstrates market participants’ sensitivity to recent highs.

The concentration of loss-holding addresses indicates that a large portion of investors purchased XRP at higher price levels. Such positioning can create pressure during market corrections, contributing to heightened volatility.

As the ETF wave progresses, market watchers will track whether these new products support price stability. The combination of increased exposure and institutional participation could influence trading patterns in the near term.

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