Around 36.8 Billion XRP Now Are Now Underwater. Here’s What This Means

Volatility remains a defining feature of cryptocurrency markets, and even established digital assets frequently experience periods when large numbers of investors hold positions at a loss. During these periods, on-chain analytics often reveal deeper insights into market sentiment, investor behavior, and the broader health of a blockchain ecosystem.

Recent data suggests that XRP has entered such a phase. A considerable share of its circulating supply now sits below the price levels at which many investors originally acquired their holdings. This situation has raised fresh questions about market resilience and the potential implications for XRP’s next price cycle.

Cointelegraph Highlights Glassnode’s On-Chain Findings

About 36.8 billion XRP tokens are underwater, according to blockchain data from Glassnode, shared by Cointelegraph. In market terminology, “underwater” describes assets trading below the price at which holders purchased them.

🚨 UPDATE: Around 36.8B XRP are now underwater with unrealized losses hitting $50.8B, per @glassnode. pic.twitter.com/1vqsPjwzHd

— Cointelegraph (@Cointelegraph) March 9, 2026

Glassnode’s analysis estimates that these holdings represent roughly $50.8 billion in unrealized losses. Although investors only realize these losses when they sell their assets, the figure highlights the scale of capital currently tied up in positions that remain below their acquisition cost.

Analysts often track this metric to understand how market participants might behave if prices approach their break-even levels.

Why Underwater Supply Matters

Underwater supply can significantly influence price dynamics. When prices recover and approach the average purchase level of these investors, some holders may sell to exit their positions without losses. This behavior frequently creates resistance zones during recovery rallies.

At the same time, widespread unrealized losses can signal the later stages of a correction cycle. Historically, markets sometimes reach key turning points when weaker investors exit, and long-term participants begin accumulating discounted assets.

For XRP, the presence of billions of tokens held at a loss reflects both lingering market pressure and the possibility of a structural reset in investor positioning.

Despite market fluctuations, the broader XRP ecosystem continues to evolve. Ripple remains focused on expanding blockchain-based financial infrastructure designed to improve cross-border payments and liquidity management.

A Test of Investor Conviction

The revelation that 36.8 billion XRP currently sit underwater underscores the emotional and financial pressure many holders now face. Markets often test investor conviction during such phases, particularly when unrealized losses accumulate across large portions of the supply.

However, cryptocurrency history shows that these conditions can also precede renewed accumulation and eventual recovery cycles. Whether XRP moves toward stabilization or faces further volatility will depend on broader market sentiment, liquidity flows, and continued ecosystem development.