Why 26.5 billion XRP tokens are now sitting at a loss despite a $2 price tag
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where we break down the world of crypto in simple, straightforward ways. Today, we’re diving into why a big chunk of XRP tokens—about 26.5 billion of them—are currently at a loss even though the price is hovering around $2. We’ll look at the background, current metrics, and what it all means for holders. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant here to ask the questions you’re probably thinking! So, John, for someone new to this, why would XRP tokens be losing money when the price seems pretty high at $2?
Understanding XRP Basics
John: Great question, Lila. XRP is a cryptocurrency created by Ripple Labs back in 2012, designed mainly for fast and cheap cross-border payments. Unlike Bitcoin, which is mined, XRP was pre-mined with a total supply of 100 billion tokens, and it’s used on the XRP Ledger for transactions that settle in seconds. Think of it like digital oil greasing the wheels of international money transfers—quick and efficient, without the need for traditional banks (though it does partner with them).
Lila: Pre-mined? That sounds like they just created all the tokens at once. Does that affect how its price behaves compared to something like Bitcoin?
John: Exactly, Lila. Since all XRP was created upfront, its value relies more on adoption and market demand rather than mining rewards. In the past, this setup helped it spike during bull runs, like in 2017-12 when it hit an all-time high of about $3.84. And hey, if tokens had feelings, XRP would be that reliable friend who’s always ready for a quick trip—no waiting around!
Historical Background of XRP’s Price Swings
John: To understand the current situation, let’s rewind. XRP faced major regulatory hurdles, especially the SEC lawsuit filed on 2020-12-22, accusing Ripple of selling unregistered securities. This dragged on until a partial win for Ripple on 2023-07-13, when a judge ruled XRP itself isn’t a security. That cleared some clouds, leading to relistings on exchanges and price boosts.
Lila: Wow, that lawsuit sounds intense. How did it impact prices back then?
John: It sure did, Lila. During the lawsuit peak, XRP dipped below $0.20 in late 2020. But post-ruling, it climbed steadily, especially with broader crypto adoption. By November 2024, around Donald Trump’s re-election on 2024-11-05, XRP was trading at about $0.53, with profitability metrics at similar lows to what we’re seeing now.
Current Market Landscape for XRP
John: As of today, 2025-11-20, XRP’s live price is $2.04 USD, according to CoinMarketCap data. That’s up significantly from last year’s lows, but the broader crypto market downturn is hitting hard. Glassnode reports show only 58.5% of XRP’s circulating supply—roughly 58.5 billion tokens out of 100 billion—is currently profitable, the lowest since late November 2024.
Lila: Circulating supply? And why is profitability so low if the price is over $2?
John: Circulating supply means the tokens actively available in the market, not locked up. Profitability here tracks holders who bought at lower prices; many who got in during recent highs are now underwater. Despite the $2 tag, about 26.5 billion tokens (or 41.5% of supply) are at a loss, per recent on-chain data from sources like BitcoinEthereumNews. It’s like buying a stock at its peak— the price might be high, but if you paid more, you’re still in the red (no pun intended on those red candlesticks!).
Profitability Metrics Explained
John: Let’s break down these metrics. Profitability is calculated by comparing the current price to the average cost basis of holders. Right now, with XRP at $2.04, Glassnode data indicates a plunge back to 2024 levels. This ties into market sentiment, where posts on X highlight over 41.5% of supply at a loss, echoing the pressure from the 2024-11 election period.
Lila: Cost basis? That’s like the average price someone paid for their tokens, right? How does that connect to the bigger market downturn?
John: Spot on, Lila. The downturn stems from wider crypto volatility, including Bitcoin’s fluctuations affecting altcoins like XRP. Recent news from InsideBitcoins notes XRP has cooled from highs but holds above recent lows, with trading volume at $5 billion in the last 24 hours as of 2025-11-20.
Factors Influencing the Downturn
John: Several factors are at play. Regulatory clarity improved in 2025 with Ripple’s wins, but global economic pressures—like interest rate hikes—have cooled crypto enthusiasm. Plus, XRP’s open interest on futures is resetting, as noted in X posts and CryptoRank data, showing reduced leverage on longs.
Lila: Open interest? Sounds technical—can you simplify?
John: Open interest is the total number of outstanding derivative contracts, like futures bets on price. When it’s low, it signals a market reset, potentially setting up for recovery. Other influences include Ripple’s network growth, with over 7 million accounts on the XRP Ledger as of 2025-10-01, per CryptoRank.
Use Cases and Adoption Trends
John: Despite the dip, XRP shines in real-world use. It’s powering remittances and payments, with partnerships like those with banks for instant settlements. In 2025, spot ETFs for XRP debuted with $37.7 million in volume, boosting accessibility, according to Forbes.
Lila: ETFs? Like stock market funds for crypto?
John: Yes, exactly—exchange-traded funds that let traditional investors buy XRP exposure without holding tokens directly. Looking ahead, Forbes predicts potential growth to 2030 driven by adoption, though risks like market volatility remain. Here’s a quick list of current use cases:
- Cross-border payments: Faster than SWIFT, settling in 3-5 seconds.
- Remittances: Lower fees for sending money internationally, used by firms like MoneyGram.
- DeFi integrations: Growing on the XRP Ledger for lending and trading.
- Tokenization: Real-world assets like currencies digitized on the blockchain.
John: (And if crypto were a buffet, XRP would be the speedy delivery service—gets your value there before the food gets cold!)
Looking Ahead: Risks and Opportunities
John: In the future, XRP could see upsides from ETF expansions and Ripple’s tech, but watch for ongoing volatility. Predictions from Ventureburn suggest consolidation around $2.20-$2.30 in November 2025, based on technical analysis. Always research thoroughly—no crystal balls here.
Lila: So, what should beginners keep in mind to stay safe?
John: Focus on diversification, use trusted exchanges, and track metrics like those from CoinMarketCap. Past events like the 2023 ruling show resilience, but present dips remind us crypto is volatile.
John: Wrapping up, it’s fascinating how XRP’s story mixes tech innovation with market realities— even at $2, not everyone’s in the green due to entry points. Remember, crypto is a marathon, so stay informed and patient. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Thanks, John—that makes sense of the numbers without the overwhelm. Key takeaway: Prices can be high, but profitability depends on when you bought in!
This article was created using the original article below and verified real-time sources:
- Why 26.5 billion XRP tokens are now sitting at a loss despite a $2 price tag
- XRP price today, XRP to USD live price, marketcap and chart | CoinMarketCap
- XRP sees profitability plunge to lowest since 2024 election
- Where Will XRP Be In 5 Years? Price Prediction and Analysis | October 2025