Santiment reports that the average active XRP Ledger (XRPL) wallet has lost roughly 41% over the past year, marking the lowest MVRV since the FTX collapse in November 2022.
Therefore, this underscores the significant market pressure XRP holders are currently facing.
Why is the Mean Value to Realized Value (MVRV) important? Well, it tracks the gap between an asset’s market value and its acquisition cost, revealing trader profitability in real time.
For XRP, a sharply negative MVRV indicates that most investors are incurring significant losses, not just on paper but in actual returns.
As a result, this scenario could create a lower-risk entry point for new buyers or those adding to positions, as the heaviest selling pressure has already passed.
 
Interestingly, such extreme downside in the crypto market often precedes market stabilization or even a rebound.
XRP Under Pressure as Schwartz Clarification Fuels Market Supply
David Schwartz, former Ripple CTO, recently clarified his often-cited remark that “XRP cannot be dirt cheap.”
He explained it was intended to highlight XRP’s utility in payment systems, not to set price expectations. The clarification has reignited debate among traders, underscoring the ongoing tension between XRP’s real-world use and market speculation.
On the other hand, Ripple’s $50 billion‘underwater’ XRP coins held at a loss have led to distinctive views. Some see it as a potential wave of capitulation, with holders selling to cut losses; others view it as just another dip in the market cycle.
Either way, the massive unrealized losses highlight the extreme volatility and emotional swings that define crypto markets.
In conclusion, XRP’s market is showing clear signs of stress, with wallets deeply underwater and a large share of supply held at a loss. While past downturns like the FTX collapse were painful, they also created conditions for eventual rebounds, leaving today’s market at a crossroads between caution and opportunity.
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