XRP Ledger Faces Sharp Decline as On-Chain Data Signals Weak Demand in 2026

Fresh on-chain data analyzed by Glassnode paints a troubling picture for XRP Ledger in June 2026, suggesting the network is struggling after the speculative surge that fueled major growth throughout 2025. According to the latest blockchain metrics, XRP is now experiencing declining network activity, growing investor losses, and weakening market fundamentals.

One of the clearest indicators of this downturn is the realized profit and loss ratio (90-day SMA), which has fallen to just 0.38. This means that for every $1 in realized losses, investors are generating only $0.38 in realized profits. The sharp decline highlights a significant shift in market sentiment compared to 2025, when XRP holders were realizing profits at levels nearly 50 times greater than losses during the token’s rally to multi-year highs.

The data also reveals that approximately 41.5% of XRP’s circulating supply, equivalent to around 26.5 billion XRP, is currently held at a loss. As a result, only 58.5% of the circulating supply remains in profit. This growing percentage of underwater holdings creates additional selling pressure, as many investors may look to exit positions during any price recovery.

Beyond price performance, XRP Ledger’s network activity has weakened dramatically. Glassnode reports that average daily transaction fees paid on the network have dropped from roughly 5,900 XRP in February 2025 to just 500 XRP today. Such a steep 91.5% decline suggests that user participation and organic demand have largely disappeared following last year’s speculative boom.

Analysts warn that the combination of falling network usage and widespread investor losses leaves XRP in a vulnerable position. Many market participants who entered near recent highs are now selling at a loss, while the blockchain itself is generating significantly less activity than during its peak period.

Glassnode concludes that XRP faces a difficult environment in 2026. With a large supply of loss-making positions creating resistance above current prices and weakening network demand offering little support below, the prospects for a rapid XRP price recovery appear limited based on current blockchain data.