Around 36.8 Billion XRP Now Are Now Underwater. Here’s What This Means
Volatility remains a defining feature of cryptocurrency markets, and even established digital assets frequently experience periods when large numbers of investors hold positions at a loss. During these periods, on-chain analytics often reveal deeper insights into market sentiment, investor behavior, and the broader health of a blockchain ecosystem.
Recent data suggests that XRP has entered such a phase. A considerable share of its circulating supply now sits below the price levels at which many investors originally acquired their holdings. This situation has raised fresh questions about market resilience and the potential implications for XRP’s next price cycle.
Cointelegraph Highlights Glassnode’s On-Chain Findings
About 36.8 billion XRP tokens are underwater, according to blockchain data from Glassnode, shared by Cointelegraph. In market terminology, “underwater” describes assets trading below the price at which holders purchased them.
🚨 UPDATE: Around 36.8B XRP are now underwater with unrealized losses hitting $50.8B, per @glassnode. pic.twitter.com/1vqsPjwzHd
— Cointelegraph (@Cointelegraph) March 9, 2026
Glassnode’s analysis estimates that these holdings represent roughly $50.8 billion in unrealized losses. Although investors only realize these losses when they sell their assets, the figure highlights the scale of capital currently tied up in positions that remain below their acquisition cost.
Analysts often track this metric to understand how market participants might behave if prices approach their break-even levels.
Why Underwater Supply Matters
Underwater supply can significantly influence price dynamics. When prices recover and approach the average purchase level of these investors, some holders may sell to exit their positions without losses. This behavior frequently creates resistance zones during recovery rallies.
At the same time, widespread unrealized losses can signal the later stages of a correction cycle. Historically, markets sometimes reach key turning points when weaker investors exit, and long-term participants begin accumulating discounted assets.
For XRP, the presence of billions of tokens held at a loss reflects both lingering market pressure and the possibility of a structural reset in investor positioning.
Despite market fluctuations, the broader XRP ecosystem continues to evolve. Ripple remains focused on expanding blockchain-based financial infrastructure designed to improve cross-border payments and liquidity management.
A Test of Investor Conviction
The revelation that 36.8 billion XRP currently sit underwater underscores the emotional and financial pressure many holders now face. Markets often test investor conviction during such phases, particularly when unrealized losses accumulate across large portions of the supply.
However, cryptocurrency history shows that these conditions can also precede renewed accumulation and eventual recovery cycles. Whether XRP moves toward stabilization or faces further volatility will depend on broader market sentiment, liquidity flows, and continued ecosystem development.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Federal Reserve meeting minutes turn "hawkish"! Most officials support another rate hike this year, US dollar continues to rise
The latest minutes released by the Federal Reserve show that all 19 officials support a rate hike in September, and most participants believe that further interest rate increases may still be needed before the end of the year.
High yields on US Treasuries start attracting buyers; $39 billion 10-year Treasury auction sees strong demand as long-end yields give back gains
U.S. Treasury bonds showed mixed performance on Wednesday after a $39 billion 10-year Treasury auction saw strong demand, indicating that as yields reach multi-decade highs, some major investors are starting to re-enter the market.
Overnight U.S. Stocks | Federal Reserve officials expect another rate hike before the end of the year, three major indexes closed lower, Micron Technology (MU.US) rose 4%
At the close, the Dow Jones Industrial Average fell by 341.41 points, down 0.66%, to 51,179.87 points; the S&P 500 Index dropped by 17.20 points, down 0.22%, to 7,801.73 points; and the Nasdaq Composite Index declined by 61.20 points, down 0.22%, to 27,538.69 points.
Federal Reserve meeting minutes: All 19 policymakers support a rate hike in September, but reasons vary; most expect further hikes this year, suggesting no urgency in October.
Most officials view a September interest rate hike as an "insurance" measure against stubborn inflation; a minority see it as a necessary step to curb inflation. Overall, there is no indication of a desire to push for consecutive rate hikes. The "New Fed News Agency" emphasized the minutes: "Most participants believe that it may be appropriate to raise interest rates again before the end of the year." Nearly all officials believe inflation remains elevated and the labor market is close to full employment. Many noted that, despite the rise in long-term U.S. Treasury yields, financial conditions are still conducive to economic growth. Some officials believe that AI will boost investment and productivity, but may also contribute to inflation. The minutes revealed that the U.S.-Japan joint intervention in July to support the yen was a U.S. Treasury action, with no Federal Reserve funds used.
Crypto prices
More
