XRP Profit Share Hits 58.5% as ETF Launch Fails to Boost Price

Recent blockchain intelligence from Glassnode paints a concerning picture for XRP investors, with only 58.5% of the cryptocurrency’s supply currently held in profit. This marks the lowest profitability level since November 2024, when XRP was trading near $0.53—a stark contrast to current prices around $2.20. The data reveals that approximately 41.5% of XRP supply, equivalent to roughly 26.5 billion tokens, remains underwater, creating what analysts describe as a ‘top-heavy market’ where late buyers face significant losses.

The structural fragility of XRP’s market becomes particularly evident when examining price action. Despite a modest rebound from recent lows, the asset remains down 40% since hitting its all-time high of $3.65 in July this year. Glassnode’s assessment indicates that this concentration of losses among recent buyers leaves the market vulnerable to sharp corrections, as those holding underwater positions may be forced to sell during further price declines, creating a cascade of downward pressure.

November witnessed a significant milestone for XRP with the launch of multiple spot XRP ETFs offering US investors direct exposure to the XRP Ledger’s native cryptocurrency. Franklin Templeton’s EZRP debuted on November 18, followed by additional products from Bitwise, 21Shares, and CoinShares expected to roll out between November 19 and 22 on the Nasdaq Global Market. According to flow data from SoSoValue, Canary Capital’s XRPC—the first spot XRP ETF launched last week—has attracted almost $270 million in cumulative flows, with Monday inflows alone reaching $25.41 million.

Despite this substantial institutional interest and capital inflow, XRP’s price trajectory has remained largely unmoved. The disconnect between ETF success and underlying asset performance suggests that while institutional products are gaining traction, they have yet to translate into meaningful price support for XRP itself. This phenomenon highlights the complex dynamics between derivative products and their underlying assets in the cryptocurrency space, where traditional market catalysts sometimes fail to produce expected outcomes.

The challenges facing XRP reflect a broader downturn in cryptocurrency market sentiment. According to Google search trends analyzed by crypto analytics firm Alphractal, public interest in the crypto market as a whole has slipped to its lowest level since June. As Bitcoin, XRP, and other crypto prices decline, search volumes for exchanges, altcoins, and market trends have dropped sharply, indicating diminished retail engagement during the current market downturn.

Alphractal’s analysis suggests that interest typically returns only when volatility picks up and prices start moving higher. Until then, attention remains subdued, creating a challenging environment for all digital assets. However, the analytics firm notes that such quiet phases often present strong opportunities for long-term investors, though current market conditions suggest continued pressure in the near term. For XRP specifically, the combination of declining profitability metrics and waning public interest creates a particularly challenging backdrop for any sustained recovery.