XRP Sees Biggest Realised Loss Spike Since 2022: Capitulation or Turning Point?

XRP recorded its largest weekly realised-loss spike since 2022, with about US$1.93 billion (AU$2.95 billion) in losses realised on-chain over a single week, according to data from Santiment.

Realised losses rise when coins move at prices below what holders paid, and this tracks actual selling at a loss instead of mere paper drawdowns. Spikes typically reflect capitulation, when holders exit rather than wait for a recovery.

While this feels negative in the moment, it can actually be an important price signal. If many weak hands have already sold, there may be fewer sellers left to push prices lower. In simple terms, a wave of heavy realized losses can mean that much of the damage has already been done.

Santiment

As Santiment noted, large realised-loss weeks require both aggressive sellers and enough buyers to absorb supply at lower levels. In past cycles, that kind of clearing event has often appeared near major lows because short-term holders exit and coins shift to buyers with longer time horizons or lower cost bases.

The last comparable spike, roughly 39 months ago, was followed by a 114% XRP rally over the next eight months, according to the data cited. That history shows what has happened before, not what must happen next.

Read more: Coinbase Expands Crypto-Backed Loans to XRP, DOGE, ADA and Litecoin

XRP ETFs Hit a Wall

The interest in XRP ETFs has also slowed down. After an impressive start in early 2025 when investors poured in over US$1.2 billion (AU$1.7 billion), the excitement has hit a wall. In recent weeks, data from SoSo Value showed several days where no new money came into these funds at all.

Because investors are neither buying nor selling much through these funds, the total amount of money invested has stayed flat. While there were some small gains and losses throughout February, the overall trend shows that the high demand seen earlier this year has disappeared for now.

This lack of interest is also affecting the price of the XRP token. Even though the price briefly jumped to US$1.65 (AU$2.3) last weekend, it couldn’t stay that high. Without new investors stepping in, the price dropped by more than 10%, falling back down toward US$1.34 (AU$1.90).

Read more: Ripple CEO Says $1 Trillion Valuation Is Within Reach

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