Evernorth Holdings, one of the world's largest XRP holders, is facing a significant unrealized loss of over $380 million as the price of XRP continues to struggle. According to CoinGecko data, the firm holds 473,276,430 XRP, representing about 0.473% of the circulating supply, currently valued at approximately $684.7 million. The company's average entry price is around $2.40, meaning XRP would need to rise roughly 70% from its current level near $1.43 to offset these losses.
The situation is part of a broader trend affecting Digital Asset Treasuries (DATs). BeInCrypto reports that BitMine is facing nearly $7 billion in unrealized losses on its ETH holdings, while Strategy is down over $4 billion due to falling Bitcoin prices. Charles Edwards, founder of Capriole Investment, has warned that the DAT model represents a "leverage explosion waiting to happen," comparing its rapid expansion to the 1920s investment trust boom and suggesting potential consequences could be more severe than the Luna and FTX collapses.
Despite the financial strain, some positive developments within the Ripple ecosystem offer hope. Santiment data indicates retail investor sentiment for XRP remains optimistic, contrasting with growing pessimism toward Bitcoin and Ethereum. This optimism is partly driven by the integration of Hyperliquid into Ripple Prime and the launch of XRPL Permissioned Domains on February 4, 2026.
Analysts are also examining historical patterns for clues on a potential bottom. One analyst, Charting Guy, suggests XRP could see a bottom around $1.20 in March 2026, with a possible "wick" down to $1.00 to shake out weaker holders. This aligns with a multi-year ascending trendline that currently provides support around $1.05–$1.10. Furthermore, CryptoQuant analyst CryptoOnchain notes that XRP open interest on Binance has dropped to $405.9 million, its lowest since November 2024, suggesting a major leverage flush that could pave the way for a healthier, more organic recovery.
