XRP (XRP), the native token of the Ripple Network, has dropped to $1.40 and flipped into negative on-chain profitability as holders realize massive losses and the Spent Output Profit Ratio falls below 1 for the first time since 2022.
What Happened: XRP Profitability Turns Negative
According to data from Glassnode, the decline started in August 2025, when XRP began a steady slide from $3.5 in mid-July to $2.4 by late October — a 27% drop. Long-term holders who had accumulated before November 2024 responded by increasing their spending 580%, from $38 million per day to $260 million per day.
That selling continued into early November, a pattern analysts described as distribution into weakness rather than strength.
Unlike previous profit-realization waves that coincided with rallies, experienced traders were simply exiting positions and adding downward pressure.
By mid-November, the share of XRP supply in profit had fallen to 58.5%, its lowest since November 2024, when the token was worth $0.53.
At that point XRP traded around $2.15 — four times higher than the year-earlier price — yet more than 41% of supply was underwater, a sign the market was structurally fragile and dominated by late buyers.
The price then broke below $2 in mid-November, and the 30-day estimated market average of daily realized losses surged to $75 million. Each time XRP has retested $2 since the start of the year, investors have realized between $500 million and $1.2 billion in losses per week, making $2 a major psychological level.
Also Read: Ethereum Stalls Below $2,050 As Bears Tighten Grip
Why It Matters: Capitulation or Collapse
XRP now trades at $1.40, below the aggregate holder cost basis, which explains the panic selling. The question is whether this represents capitulation — a painful but temporary flushing of weak hands — or something more structural.
Experts argue it is the former. They point out that fundamentals are stronger now than during the 2021-2022 drawdown, when regulatory clarity around Ripple did not exist.
The precedent from that earlier SOPR collapse suggests stabilization could follow, but only after a period of extended consolidation.
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