On-chain data reveals that Solana (SOL) and XRP are exhibiting significantly higher levels of unrealized losses among holders compared to market leaders Bitcoin (BTC) and Ethereum (ETH). According to analytics from Glassnode, a substantial portion of SOL and XRP holders remain 65% to 75% in loss, signaling weaker positioning and slower recovery strength for these altcoins.
The Market Relative Unrealized Loss chart quantifies this disparity. SOL's loss sits at approximately 0.8, while XRP hovers around 0.3. In stark contrast, Bitcoin and Ethereum are close to 0.1 or even lower. This indicates that far more SOL and XRP holders are underwater on their investments. Historically, SOL has shown higher spikes in unrealized losses, particularly during major downturns like late 2022 and again in the current 2026 cycle, pointing to panic phases where many bought at higher prices.
The current market downturn amplifies this trend. Bitcoin has fallen from a high of about $126,000 to around $74,000. During this drop, Solana and XRP have fallen more sharply than BTC and other major coins. SOL is now trading near $83.44, down nearly 72% from its peak of $294.96. XRP is trading near $1.35, down about 65% from its all-time high of $3.82.
Weakening demand compounds the issue. For Solana, both institutional and retail interest are fading. Solana ETFs have seen three consecutive weeks of outflows, with current inflows remaining weak. Derivatives data reflects this bearish sentiment: Solana's Open Interest has dropped 4.57% to $4.98 billion, and funding rates have turned negative at -0.0046%, indicating a shift toward short positions. XRP shows a similar, though less severe, trend with slowing ETF inflows and a 2.87% drop in Open Interest to $2.48 billion.
Analyst Ted Pillows highlighted that companies holding Solana in their treasuries are struggling more than their BTC, ETH, and XRP counterparts. Stocks like Forward Industries (FWDI), the largest Solana treasury, have crashed over 80% in six months. Pillows remarked these companies look like "Solana memecoins" and could fall further. In comparison, while Ethereum treasury company Bitmine holds a massive $6 billion unrealized loss on ETH, and MicroStrategy holds a significant loss on BTC, these assets have shown greater relative strength than Solana-linked equities.
The analysis concludes that during market recoveries, money typically flows into Bitcoin first due to its perceived safety, allowing it to stabilize faster. Ethereum occupies a middle ground, recovering better than most altcoins but not as strongly as BTC. In contrast, Solana and XRP face continued pressure from deeper losses and weaker fundamental demand, hindering their recovery pace.
