XRP News: On-Chain Analytics Company Vitreous node The 90-day P/E ratio for XRP was recorded at 0.38, meaning that for every $1 of on-chain profit, investors are making $2.63 in losses, and the current market phase is classified as an “intensive capitulation” phase.
The reading falls at less than half of the 1.0 equilibrium threshold that separates net profit from net loss systems, and represents a near complete reversal from the peak ratio of around 50 during the XRP euphoria in 2025, when realized gains offset losses by an almost incomprehensible margin.
source: Glassnode on X
XRP was trading near $1.10 at the time of analysis, below the total realized price of around $1.48, meaning the average holder is currently underwater on a cost basis.
Glassnode directly stated that “this ratio so far from the equilibrium threshold of 1 shows a market where most investors are transferring their tokens at a loss, a typical feature of an intense capitulation,” and added that “this dynamic has completely reversed” compared to the previous bull phase.
The speed of the reversal, from 50 to 0.38 across a single cycle, has drawn comparisons to the structural decline documented by Glassnode for XRP in early 2022, the last time the asset entered a relatively loss-dominated on-chain system.
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XRP News: Composite signals, XRPL fees, SOPR, and underwater supply
The achieved profit loss ratio does not stand alone. XRPL fees, measured on a 90-day moving average, collapsed from around 5,900 XRP per day in February 2025 to just 500 XRP, a 91.5% decline that Glassnode attributes to a sharp decline in transaction demand associated with the previous speculative phase.
The fee scale is a direct proxy for demand for block space: when developers, payment processors, and active users transact on the XRP Ledger, fees rise; When they withdraw, fees go down, and the 91.5% drop is not an improvement in fees, it is an exodus of users.
source: Glassnode on X
Separately, XRP’s consumed output profit ratio, or SOPR, fell from around 1.16 in July 2025 to 0.96 by early 2026, crossing below the critical 1.0 break-even line that separates net gains from net coin movement.
A SOPR below 1.0 means that the average coin being transferred on-chain was acquired at a price higher than the current selling price, which is a structural confirmation that loss making, not profit taking, is driving on-chain activity. Complicating matters further, Glassnode data indicates that approximately 41.5% of the circulating XRP supply, roughly 26.5 billion tokens, is currently held at a loss, with 62.8% of the maximum realized XRP concentrated in investors who established a cost basis over the past six months, a distribution profile that Glassnode describes as “super-heavy” and structurally fragile.
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XRP Capitulation: What on-chain metrics actually show
The analytical question is no longer whether XRP is in capitulation; The scales on the chain confirm that it is. The question is whether the current formation constitutes a final influx that precedes a cycle reset, or a structural collapse of demand severe enough to make Glassnode’s implicit warning about the next, distant spike the practical scenario.
The mechanics of the realized P/L ratio work as follows: The measure compares the total dollar value of gains made by currencies moving on-chain against the total dollar value of realized losses in the same window, here smoothed across a 90-day average to remove short-term volatility. A reading of 1.0 indicates balance.
A reading of 0.38 indicates that the market is not just weak – it is structurally dominated by bondholders who have either been forced to sell or have given up any expectation of a near-term recovery. In previous Bitcoin cycles, achieved P/L ratios were at similar extreme levels – around the lows of December 2018 and November 2022, preceding the eventual lows, although the lag between extreme readings and price recovery ranged from weeks to several months and was not guaranteed by the ratio alone.
The distribution of “top-heavy” holders identified by Glassnode amplifies the downside transmission mechanism in a specific way: when 62.8% of the cap achieved is set by buyers who entered within the last six months, these buyers maintain cost bases near the 2025 peak prices.
Source: XRPUSD / Tradingview
As the price of XRP falls below their holding levels, they enter the pool underwater and face a binary choice: wait and see, or sell and crystallize losses. When demand for the organic network, measured in XRPL fees, collapses at the same time, there is no underlying use case catalyst to interrupt these selling accounts.
The result is the self-reinforcing loop that characterizes the late capitulation cycle: more sellers, fewer buyers, lower fees, lower prices. It is necessary to point out the epistemological status of this data: what the 0.38 P/E ratio proves is that capitulation occurs with great intensity. But what it does not prove is that capitulation has been completed, or that current price levels represent a permanent floor.
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Daniel Francis is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. A crypto native since 2017, Daniel brings his background in cross-chain analytics to author evidence-based reports and detailed guides. It is certified by the Blockchain Council and is dedicated to providing “information gain” that cuts through the market noise to find blockchain’s real-world utility.
