Over 99% of XRP holders are in profit

Fresh on-chain data from on-chain analytical platform Glassnode shows that 99.6% of XRP's circulating supply is sitting in profit, meaning that hardly anyone wants to sell at a loss. This figure highlights the substantial price hikes XRP has undergone over the past weeks, rising to $3.64 at one point.

XRP investor sentiment has also reached the verge of euphoria; the percentage of supply in profit is currently near an 18-month high.

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This spike is occurring as both futures open interest and 24-hour trading volumes have rapidly increased simultaneously, suggesting that it is not just retail investors who are getting long, with the percentage of supply in profit at one of its highest levels since 2018 when the asset hit its all-time high at $3.84.

Bitcoin trails behind XRP

Bitcoin (BTC) is up nearly 70% at over $117,000, and its percentage of supply in profit is at almost 97%, just under that of XRP. Historically, Bitcoin has very high returns for holders, but the recent vertical move of XRP has now temporarily surpassed it in terms of raw holder gains.

As Bitcoin adoption increases and holding cycles grow longer, profits are more distributed across price levels. The sharp XRP rally has led to the majority of its holders being in profit in an extremely short period.

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What this means for the market

Such outsized levels of profitability often indicate turning points. Though it evinces very bullish sentiment, it could also be suggestive of profit-taking pressure in the short term. However, with increasing interest in futures and a steady volume, the momentum could move forward—especially if regulatory clarity emerges from the yet-to-be-enacted CLARITY Act.