XRP’s supply profitability has dropped to levels not seen in nearly two years, coinciding with the first monthly net outflows from spot XRP exchange-traded funds since their introduction. Despite these trends, data indicates that large XRP holders, commonly known as whales, are not offloading substantial amounts on exchanges, resulting in diverging behavior between retail and institutional investors compared to major holders.
XRP holders sit on losses as ETF demand wanes
Glassnode’s latest on-chain analysis finds that only 43.4% of XRP’s circulating supply is in profit at the $1.33 price mark. This is the lowest proportion since July 2024 and signals that over half of all XRP in circulation is being held at a loss.
XRP’s price decline has persisted for six consecutive months, amounting to a drawdown of more than 60%. This ongoing downturn has left a significant portion of investors, especially those who purchased at higher levels over the past year, underwater.
Glassnode pointed out that investors who accumulated XRP above $2 within the past year have been realizing daily losses ranging between $20 million and $110 million since November 2025.
In parallel, institutional interest in XRP through spot ETFs has noticeably diminished. March 2026 registered the first net outflow for these products, as around $31.16 million exited spot XRP ETFs, according to SoSoValue data. Early April has already seen additional outflows.
Assets under management in US-listed spot XRP ETFs have decreased from roughly $1.65 billion at the January high to about $950.58 million. This decline in both price and ETF holdings highlights reduced confidence among institutional investors during the recent downturn.
Whale selling slows as market uncertainty grows
While profitability and ETF flows suggest bearish momentum, whale activity presents a different story. Analyst Arab Chain reported that large XRP transfers to Binance have dropped to their lowest point since early 2026, indicating whales are refraining from rapidly sending tokens to exchanges.
Arab Chain highlighted that daily whale inflows into Binance have averaged only around 12.60 million XRP in recent periods, far below previous spikes, with the one-month cumulative indicator dropping to some of its lowest levels since early 2026.
A slowdown in whale transfers to trading platforms naturally decreases the amount of XRP available for immediate sale on exchanges, tightening supply and potentially creating conditions for a price reversal. However, the reduction in such flows alone does not guarantee that the trend will change direction.
The same analyst remarked that declining inflows to exchanges typically reflect whales choosing to hold their XRP offline, often considered a relatively encouraging sign for price stability, whereas past surges in exchange inflows have been associated with increased selling pressure.
The market now faces conflicting signals: shrinking ETF interest and widespread losses among existing holders are balanced by restrained whale activity. This presents a crossroads, leaving investors speculating whether further capitulation may follow or stabilization could take hold if whales continue to hold back.
For now, XRP’s price action continues to mirror broader crypto market trends. Over the last 24 hours, the token has slipped 1.89%, with trading activity holding near the $1.32 mark.
- XRP supply profitability has reached its lowest point in 21 months as prolonged losses mount.
- Spot XRP ETFs saw their first monthly net outflows and institutional demand appears to be weakening.
- Large XRP holders have not aggressively sold, creating mixed signals for the token’s near-term outlook.
