What To Know:
- XRP trades near $1.87, down roughly 25% since Evernorth unveiled its XRP treasury strategy in late October.
- Evernorth’s 473 million XRP holdings now show over $200 million in unrealized losses, based on on-chain data.
- Market sentiment around XRP has turned sharply bearish, with negative commentary and short interest rising.
Ripple’s native crypto, XRP, remains stuck below the closely watched $2 mark, and the prolonged slump is beginning to show consequences for its largest institutional backer. Evernorth, a Nevada-based firm that has positioned itself as the biggest corporate holder of XRP, is now carrying more than $200 million in unrealized losses as the token struggles to regain momentum.
XRP Unable to Break $2 Mark Barrier
At the time of writing, XRP was trading at $1.87, up a solid 0.9% in the past 24 hours in the context of a wider market rally. But the jump was hardly a relief, which has been eroded by months of downward pressure over the asset’s institutional story.
Evernorth brought XRP into the limelight last October when it said it would raise $1 billion to build what it called the biggest publicly listed XRP treasury. As part of a long-term bet on XRP’s role in world payments and digital finance, the announcement immediately attracted the attention of the crypto market.
“This continued accumulation reflects Evernorth’s conviction in XRP as the most important asset of the internet, and its mission to build a long-term, institutional-grade XRP treasury with compounding yield,” the firm said at the time.
Market conditions have moved in the opposite direction. Data from CryptoQuant indicates that Evernorth’s XRP position is now sitting on unrealized losses exceeding $200 million, driven by XRP’s steady decline since the treasury strategy was unveiled.
The firm’s losses reflect broader stress across the XRP ecosystem. Nearly half of XRP’s circulating supply is currently held at a loss, according to on-chain estimates. Much of that pain has emerged over the past two months, as XRP slid roughly 25% from levels seen around Evernorth’s initial announcement.
XRP is now trading below levels that were at the beginning of the year, demonstrating just how rapidly sentiment has turned. The token — once buoyed by confidence in regulatory clarity and the narrative of institutional adoption — has failed to sustain buying interest as liquidity thinned across altcoin markets. The strain isn’t unique to XRP.
Major crypto assets have seen renewed selling in the final quarter of 2025 as macro uncertainty and risk aversion continue to weigh on speculative markets. Sentiment data indicates a similar hesitancy. Santiment, a blockchain analytics firm, said negative talk about XRP hit far above historic levels. During previous bull phases, discussions around XRP tended towards neutral or positive statements. This was encouraged by a lively online community known as the ‘XRP Army.’
That tone has shifted sharply. Santiment data shows bearish XRP mentions running roughly 20% to 30% above November averages. Critical posts questioning XRP’s decentralization model, its real-world utility, and Ripple’s ongoing influence over the ecosystem have gained visibility, often drawing more engagement than supportive commentary.
Santiment described the current mood as a “fear zone,” noting that pessimism linked to XRP has reached its highest level since October.
Some traders interpret the deterioration in sentiment as a potential contrarian signal rather than a confirmation of further downside.
XRP fell around 45 percent from highs in November, following negative funding rates and surging short interest in derivatives markets. Similar dynamics have often characterized previous crypto cycles, with sharp reversals when selling pressure started to dissipate. XRP followed that pattern in late 2020 and early 2021, when uncertainty about the U.S. Securities and Exchange Commission’s lawsuit against Ripple caused a decline of more than 70%.
Prices subsequently bounced back and pushed above $2. For now, XRP is being squeezed, and Evernorth’s growing paper losses serve as a reminder of the dangers that go with big institutional wagers on choppy digital assets. How the recent selloffs manifest has been an ongoing issue that will probably have to do with whether that will be a turning point – or whether it will just be a continuation of weakness, and which one is a sign of a wider drop in sentiment in markets, liquidity and the longevity of XRP’s overarching narrative.
Also Read: Ripple (XRP) Still Trades Below $2 as Macro Developments Take Focus
