XRP Plunges 15%, Evernorth Faces $446M Loss Amid Crypto Rout

Thursday’s trading session delivered a severe blow to cryptocurrency investors, with XRP suffering the most significant single-day loss among the top 100 digital assets by market capitalization. According to data from crypto price aggregator CoinGecko, XRP plummeted 15% to trade around $1.30, marking a roughly 28% decline over the past week. A dip to $1.28 represented the lowest price for the Ripple-linked asset since its surge following the November 2024 U.S. presidential election. The sell-off was not isolated to XRP; the broader market cratered in unison. Ethereum plunged 6% to $1,985, Bitcoin briefly dove below the $67,000 mark, and other major altcoins like Solana, BNB, and Dogecoin registered losses between 8% and 9% for the day.

The violent price moves triggered a cascade of liquidations, particularly in derivatives markets. On-chain analytics platform CoinGlass reported that more than $47 million worth of XRP futures and options contracts were liquidated in the past 24 hours, with the overwhelming majority—nearly $44 million—being bullish long positions betting on a price increase. This pattern of long squeezes contributed to a staggering $1.43 billion in total crypto liquidations across all assets. Paradoxically, the panic selling fueled a 57% surge in XRP trading volume, with over $11 billion worth of the coin changing hands, indicating frantic market activity.

The market rout has had severe consequences for one of XRP’s most prominent institutional backers. Evernorth, an XRP treasury firm launched in October with backing and strategic advisors from Ripple Labs, is now facing a monumental $446 million unrealized loss on its investment. The company’s stated goal was to raise over $1 billion to purchase XRP, and in late October, it executed a $947 million buy, acquiring 388,710,631 XRP. Having made no further purchases since, Evernorth has watched the value of its holdings evaporate to approximately $501 million, a loss of nearly half its initial investment in just a few months.

The firm, which did not immediately respond to a request for comment, debuted as a dedicated XRP treasury during a more optimistic market phase. Its current predicament underscores the extreme volatility and risk inherent in concentrated crypto investments, even for entities with direct ties to the asset’s originating company, Ripple. This paper loss represents one of the most significant single-institution hits revealed during the current downturn, highlighting how rapidly sentiment and valuations can reverse in the digital asset space.

Market sentiment has decisively shifted from greed to terror. The widely watched Crypto Fear & Greed Index, maintained by CoinGlass, plummeted to a reading of 11, firmly placing it in the “Extreme Fear” category. This marks a dramatic reversal from January, when the index briefly touched 62—solidly in “Greed” territory—before beginning a steady decline. The index’s current level suggests traders are broadly skittish and anticipating further losses, a psychological state that often perpetuates selling pressure.

Amid the gloom, one data point offered a sliver of resilience for XRP. According to an ETF tracker maintained by XRP Insights, the seven spot XRP ETFs trading in the United States saw net inflows of $6.9 million on Wednesday, alongside $5.9 million in volume. While these inflows slowed from previous days, they notably did not turn negative, suggesting some investors are using the price drop as a buying opportunity within the regulated ETF wrapper. This contrasts with the derivative market’s long liquidations and indicates a divergence in behavior between different investor classes.

The global crypto market capitalization has now fallen 7.4% in a day to $2.37 trillion, a stark retreat from its peak above $4.2 trillion in September 2025. Ripple Labs CEO Brad Garlinghouse, who has recently been vocal about legislative efforts like the Market Structure bill, has not commented on the bearish turn. The silence from industry leaders and the pervasive fear index reading paint a picture of a market searching for a bottom, with XRP’s dramatic fall serving as the day’s most potent symbol of the rout’s severity.