Decoding XRP’s 91% fee crash as Ripple demand fades
XRP remains under pressure as fading speculation, rising losses, and weak demand continue weighing on market activity.
XRP’s network activity has cooled sharply since the speculative surge that defined early 2025.
Total Transaction Fees have fallen from 5.9k XRP in February 2025 to just 0.5k XRP at press time, a decline of more than 91%. The drop unfolded as trading activity slowed and fewer participants interacted with the network.
During the rally, rising prices encouraged transactions, transfers, and broader speculation.
As momentum faded, that activity gradually disappeared, leaving fee generation to contract alongside demand. The decline now suggests the network is processing far less activity than it did during its peak expansion phase.
This shift carries broader implications. With speculative participation largely absent, Ripple [XRP] increasingly depends on organic usage to sustain network activity.
Unless transaction demand begins recovering, fee generation may remain subdued. This reinforces the view that the Ripple Ledger (XRPL) is still navigating a post-speculation reset rather than a fresh growth cycle.
XRP Holders realize more losses
As speculative activity faded across the network, the pressure gradually shifted to market participants themselves. As the price retreated from the $3 region, the Realized Profit-to-Loss Ratio collapsed to 0.38, meaning losses now dominate realized activity.
This shift suggests many recent buyers are exiting underwater positions after failing to withstand the correction. Ordinarily, such stress would coincide with rising exchange inflows as holders prepare to sell.
Instead, transfers exceeding 1 million XRP into Binance continue trending lower. That divergence implies the current weakness stems more from smaller-holder capitulation and leverage unwinds than broad whale-led distribution across the market.
CVD signals persistent demand weakness
Earlier, tightening exchange supply pointed to improving market structure. Even so, demand is yet to follow. Participation across both spot and derivatives markets remains muted, with spot volume holding near $1.8 billion at press time.
That remains below the activity levels usually associated with sustained accumulation and stronger buyer conviction.
Meanwhile, XRP Open Interest has fallen from peaks above $10 billion in 2025 to nearly $2 billion, reflecting a sharp decline in speculative activity.
That hesitation continues to show in price action. Despite improving supply conditions, XRP has struggled to attract enough demand to establish a stronger recovery. Until spot volume expands and futures participation returns, the market may remain stuck in a low-conviction environment.
Final Summary
- Ripple [XRP] remains in a post-speculation contraction as network activity, holder profitability, and derivatives participation continue to decline.
- XRP shows limited whale distribution and tightening exchange supply, yet weak spot demand continues delaying recovery.
