XRP Realized Profit Ratio Falls Below 1 as Network Fees Collapse 91.5%, Signaling Intense Capitulation

XRP holders are now realizing losses at nearly three times the rate they are taking profits, according to the Glassnode update. The 90-day simple moving average of the realized profit to loss ratio has dropped to 0.38. That means for every $1 lost in the market, only 38 cents of profit is being booked. During the speculative peak in 2025, the same ratio reached 50—profit-takers overwhelmed loss-sellers by a factor of fifty to one. The complete reversal points to a market where coin movers are capitulating heavily.

The grim on-chain picture doesn’t end there. Another Glassnode metric reveals that total fees paid on the XRP network have collapsed from 5,900 XRP in February 2025 to just 500 XRP today—a 91.5% decline. Such a dramatic drop isn’t a tweak in fee structure; it signals a near-total contraction in organic transaction demand since the speculative frenzy ended.

While XRP’s on-chain activity withers, other ecosystems are holding up better. A BlockchainReporter analysis of the top 10 blockchains by developer activity this week placed Ethereum, BNB Chain, and Polygon at the front, with Solana, Cosmos, Arbitrum, and Avalanche still seeing robust engagement. That kind of developer momentum hasn’t spilled over to XRP, where transaction demand evaporated once the hype cycle passed.

Regulatory uncertainty continues to hang over altcoin markets. With a landmark US crypto bill facing possible derailment by banks just days before a Senate vote, as BlockchainReporter detailed, sentiment around speculative tokens like XRP remains skittish. The combination of weak network fundamentals and a fragile macro-regulatory backdrop makes a swift recovery difficult.

On-Chain Loss-Taking Reaches Historic Extremes

A realized profit/loss ratio staying below 1 for an extended period is rare. It indicates that the majority of on-chain volume consists of coins moving at a loss—often a hallmark of deep capitulation. At the 2025 top, the ratio was so lopsided toward profit that virtually no one wanted to sell at a loss. The inversion to 0.38 shows that exit liquidity has dried up, and many late buyers are now underwater. Whether this marks a final flush-out or simply a new equilibrium where sellers outnumber opportunists remains unclear.

Network Demand Vanishes Alongside Fee Revenue

The 91.5% fee collapse is arguably more telling than the profit/loss ratio. Fees directly measure how much activity is taking place on-chain. A drop from 5,900 XRP in February 2025 to 500 XRP now cannot be waved away as an adjustment. It reflects a network that has lost almost all the speculative transaction demand that once buoyed it. Without a catalyst to reignite usage—whether through payments integration, DeFi growth on the XRP Ledger, or new application layers—the low-fee environment may persist.

Traders watching XRP will likely monitor whether this capitulation event turns into a local bottom, as extreme loss-taking sometimes precedes stabilization. But the fee data suggests something deeper than price fear: the network is simply not being used at anywhere near its former pace. That distinction matters. Capitulation can be bought when it is purely sentiment-driven; when it is accompanied by a structural decline in usage, the path to recovery is longer and less certain.