The profitability of holding XRP has plunged to a two-year low, with a key on-chain metric indicating widespread unrealized losses among investors who have been active over the past year.
According to data from Santiment, the 365-day Market Value to Realized Value (MVRV) ratio for XRP dropped to -27% on April 7, 2026. "This is the lowest MVRV level for XRP since the market turmoil surrounding the FTX collapse in late 2022," a Santiment analyst said. The MVRV ratio compares an asset's market capitalization to its realized capitalization, providing insight into whether the average holder is in profit or at a loss.
The metric's sharp decline suggests that the average price paid for all XRP tokens moved on-chain in the last year is significantly higher than the current price. As of 18:00 UTC on April 7, XRP, the native token of the Ripple ledger, traded at approximately $0.58, down 3.5% over the past 24 hours, according to CoinGecko data. This price action has contributed to the negative MVRV reading, placing pressure on recent investors.
This deep state of unrealized loss presents a critical juncture for XRP, which currently ranks as the seventh-largest cryptocurrency with a market capitalization of over $31 billion. The scenario could trigger a wave of capitulation from holders looking to cut their losses, potentially driving prices lower. Conversely, such extreme negative readings have historically preceded market bottoms, where long-term investors accumulate from sellers. The performance of Bitcoin, which often dictates broader market direction, will be a key factor to watch.
This article is for informational purposes only and does not constitute investment advice.
