41.5% of XRP Supply at a Loss: Can ETFs Boost Hope?

• 41.5% of XRP’s circulating supply is underwater.
• Market sentiment remains shaky amid price stagnation.
• Spot XRP ETFs could play a key role in recovery.

According to on-chain data from Glassnode, approximately 41.5% of XRP’s circulating supply is currently at a loss. This figure represents the portion of tokens that were purchased at a higher price than the current market value. For investors, it’s a signal that many are sitting on unrealized losses, potentially dampening sentiment and limiting short-term price movements.

The fact that nearly half the supply is underwater reflects a broader pattern in XRP’s performance over the past several months. Despite some positive developments around Ripple’s legal battles and ecosystem growth, XRP has largely struggled to regain momentum since its last major rally.

Will Spot XRP ETFs Shift the Tide?

With this backdrop, spot XRP ETFs are becoming a focal point of discussion in the crypto community. The possibility of regulated investment vehicles could bring renewed attention to XRP from institutional players, offering a path to increased demand and potential price stability.

Spot ETFs, unlike futures-based funds, directly hold the underlying asset. This often translates to stronger market impact, especially if traditional investors enter the space. If approved, XRP ETFs could introduce a wave of fresh capital, which may help offset the current bearish pressure.

However, it’s important to remember that ETFs alone may not be a silver bullet. Broader market conditions, regulatory clarity, and Ripple’s continued growth will also influence XRP’s future trajectory.

Market Watching for a Sentiment Shift

With a significant portion of XRP holders in the red, the community is anxiously watching for any trigger that could reverse the trend. If ETF-related news breaks positively, it may not only lift prices but also reduce the amount of XRP supply currently at a loss—restoring confidence in the token’s long-term prospects.

Until then, caution remains the dominant sentiment, with many opting to hold through the turbulence in hopes of better days ahead.