XRP capitulation deepens as profit/loss ratio hits 0.38

XRP's 90-day smoothed Realized Profit to Loss Ratio has collapsed to 0.38, meaning that for every dollar of profit being taken out of the market, participants are realizing $2.63 in losses. At the cycle peak in early 2025, that ratio stood at 50 — profit-takers were overwhelming loss-sellers by a factor of 50x. That dynamic has now fully inverted.

Why it matters

A ratio this far below 1.0 is a textbook on-chain signature of capitulation: the cohort of participants moving coins is dominated by those exiting at a loss rather than locking in gains. Glassnode's 90-day smoothing strips out short-term noise, so a reading of 0.38 reflects a sustained, not momentary, shift in market structure. Historically, deep sub-1 readings on this metric have coincided with late-stage distribution exhaustion — though they can persist for extended periods before sentiment stabilizes.

Market impact

Compounding the picture, total fees paid on the XRP network have dropped 91.5% since February 2025, falling from 5,900 XRP per day to roughly 500 XRP. Fee compression of that magnitude is not a routine adjustment — it signals a near-total contraction in organic transaction demand since the speculative peak. Together, the profit/loss ratio and the fee data paint a consistent picture: the XRP network is operating well below the activity levels that characterized the 2025 rally, and the participants still transacting are largely doing so at a loss.

Source: [Just a moment...](https://studio.glassnode.com/charts/indicators.RealizedProfitLossRatio?a=XRP&c=native&chartStyle=line&mAvg=90&mScl=log&s=1562176074&subset=mid_cap&u=1780963200&zoom=)