XRP News Today: XRP's Slide Weighs on Evernorth's Treasury, Unveiling $220M Paper Loss

XRP Prices Fall Below $2, Triggering $220M Unrealized Losses for Evernorth Holdings

XRP prices have fallen below $2 in recent weeks, triggering significant unrealized losses for Evernorth Holdings, a treasury firm backed by Ripple executives. The firm, which holds 389 million XRP tokens, is now sitting on over $220 million in paper losses as the token's value has dropped from its acquisition cost of about $947 million according to reports. The decline is part of a broader market correction affecting both Bitcoin and altcoins.

Evernorth's XRP holdings are currently valued at around $724 million, assuming a price of $1.86 per token. This represents a sharp deviation from the higher prices at which the firm initially acquired the tokens. Despite the losses, there are no signs of forced selling or liquidity stress in the firm's wallet activity according to data.

The drawdown has highlighted the risks associated with concentrated crypto treasury strategies, especially during sharp market declines. While supporters of Evernorth's approach remain bullish on the long-term potential of XRP, critics argue that such exposure can amplify balance sheet volatility. The firm has not issued any public comments on the losses or on potential adjustments to its strategy as reported.

Why the Standoff Happened

The XRP price slump is part of a broader cryptocurrency market downturn that has pushed Bitcoin below $88,000 and caused altcoins to underperform. The decline in XRP is particularly notable given the token's recent adoption by institutional investors, including US-listed spot ETFs, which have recorded over $1.1 billion in net inflows since their launch according to market data.

Despite the ETF demand, XRP has failed to respond positively in the short term. Data shows nearly half of XRP's circulating supply is currently held at a loss, with the token down roughly 25% since Evernorth announced its treasury plans in late October. At current prices, the firm's holdings reflect a $220 million unrealized loss according to analysis.

Market and Investor Reactions

The market's mixed response to XRP's performance has drawn attention from both retail and institutional observers. While spot ETFs continue to accumulate the token, capital flows from smaller investors and whale-level holders have turned negative. On-chain indicators such as Capital Flow and Accumulation/Distribution Money Flow remain in the red, signaling strong selling pressure according to on-chain data.

For Evernorth, the challenge now is to balance its long-term conviction in XRP with the realities of short-term volatility. The firm has not hedged its position or reduced its holdings, which means it is exposed to further price corrections. Analysts are closely watching wallet activity for signs of rebalancing or strategic adjustments, though none have materialized so far according to monitoring.

What This Means for Investors

The situation with Evernorth underscores the volatility of institutional crypto treasuries and the risks of concentrating holdings in a single asset class. Similar issues have been observed in other parts of the market, including Ethereum and Bitcoin, where firms like BitMine and Metaplanet also face unrealized losses due to broader market weakness as reported.

For now, the key focus for investors is whether Evernorth and other large holders will continue to maintain their positions or eventually sell amid ongoing price weakness. If the latter occurs, it could signal a shift in institutional sentiment. However, for now, most long-term holders appear to be holding firm, betting on a potential rebound in XRP's value according to market analysis.