XRP Holders Face Steepest Losses Since FTX Collapse

XRP MVRV ratio hits its lowest level since November 2022, leaving 41% of holders in the red despite the XRP Ledger reaching 8.1 million wallets.

The XRP token is currently trading around $1.30, marking a decline of over 3% in the last 24 hours and maintaining a downward trend on the weekly chart.

More importantly, the MVRV (Market Value to Realized Value) indicator, which measures the average profit or loss of investors, shows that XRP holders are currently at a loss of approximately 41%. This represents the lowest level since November 2022, when the collapse of FTX sent shockwaves through the entire cryptocurrency market.

Investors Underwater

The drop in MVRV signals that a significant portion of the market is holding positions at a loss—a situation historically associated with the late stages of bear cycles or potential accumulation zones. Similar levels were observed in late 2022, shortly before XRP began a sharp recovery in the following months.

However, the current dynamics differ in one key aspect: there is a lack of a strong catalyst for a reversal, while the macroeconomic environment remains uncertain and capital is primarily concentrating in Bitcoin and ETF products.

Growth Without Price Action

Paradoxically, the weak price momentum diverges from the network’s fundamental indicators. The number of wallets on the XRP Ledger has exceeded 8.1 million—a historic high that highlights ongoing interest from users, particularly retail participants.

This growth suggests that despite the losses, participants are not leaving the ecosystem en masse. Instead, there is a broader distribution of holdings, which may limit volatility but simultaneously makes a rapid price recovery more difficult.

Retail Investor Dominance

Data indicates that XRP remains heavily dominated by retail investors—a factor that often leads to more emotional market movements and lower liquidity compared to assets backed by institutional capital.

Nevertheless, interest in XRP ETF products in the U.S. during 2026 reveals that institutional interest surrounding the asset has not entirely vanished. This creates potential for a future shift in capital if market conditions stabilize.

A Critical Moment for XRP

The combination of deep unrealized losses and a growing user base puts XRP in a unique position. On one hand, such MVRV levels have historically signaled undervaluation. On the other, the lack of strong institutional flow and competition from other crypto assets limit the upside potential in the short term.

For investors, this means XRP is entering a critical phase where market psychology will play just as important a role as fundamental metrics. The question remains whether current losses will become the foundation for the next bull cycle—or a signal for deeper consolidation.