On-chain data reveals a dramatic collapse in XRP network usage, with total transaction fees plunging 91.5% from peak levels in early 2025. According to analytics firm Glassnode, the 90-day simple moving average of total transaction fees has fallen to just 500 XRP, down from 5,900 XRP in February of last year.
"A drop of this magnitude is not a fee market adjustment. It reflects a near-total contraction in organic transaction demand on the network since the speculative peak," Glassnode noted. This decline indicates that despite XRP's price rally in the second half of 2025, actual network usage failed to follow, with fees continuing to trend lower.
Investor profitability has also evaporated. Glassnode reports that XRP's 90-day realized profit-to-loss ratio has dropped to 0.38, compared to 50 near the market peak of $3.40. This means holders are now realizing approximately $1 in losses for every $0.38 in profits, a stark reversal from the profit-taking environment of early 2025.
XRP price action reflects the weakness, trading near $1.11 after losing support at $1.40. The token is below all major moving averages, with the daily 20-day EMA at $1.22 and the 200-day EMA at $1.60. Chaikin Money Flow remains negative at -0.16, signaling persistent capital outflows. On the 4-hour chart, the first major resistance sits at $1.19, while momentum indicators like MACD remain bearish.
Interestingly, large XRP holders have not shown aggressive distribution. CryptoQuant analyst Pelin Ay noted that transfers of more than 1 million XRP to Binance have declined since the 2025 peak, and inflows from wallets holding 100,000–1 million XRP fell 15% since October 2025. The current weakness appears driven by leverage liquidations and risk-off sentiment rather than whale selling.
The broader market context adds pressure: Bitcoin's annual miner fees hit the lowest since 2019, even as BTC rallied to an all-time high in 2025, suggesting transactional demand across crypto networks is waning. With subdued inflation data delaying rate-cut expectations and Bitcoin struggling to recover, speculative assets like XRP find it hard to attract fresh capital.
