Summary
- According to Santiment, the average return for wallets active on the XRP Ledger over the past year was about -41%%, the lowest MVRV level since the FTX collapse.
- In the market, the expanding loss zone for investors is viewed as an on-chain bottom signal and a factor that lowers long-term buying risk.
- Santiment said the crypto market is structurally close to zero-sum, so buying risk tends to decline as average returns fall deeper into negative territory.
Forecast Trend Report by Period
The average return for XRP-holding wallets has fallen deeper into loss-making territory, adding to signs that the token may be nearing an on-chain bottom. In the market, the expanding zone of investor losses is also viewed as a factor that lowers long-term buying risk.
Santiment, a crypto data analytics firm, said on April 7 that the average return for wallets active on the XRP Ledger over the past year was about -41%. That is the lowest market value-to-realized value, or MVRV, level since the collapse of FTX in November 2022.
MVRV is an on-chain metric that tracks investors’ average profit or loss. A lower reading indicates that more of the market is sitting in loss territory. Because it reflects gains and losses based on actual holder positions rather than simple price declines, it is also used as a gauge of deteriorating investor sentiment.
In a post on X, formerly Twitter, Santiment wrote that the crypto market is structurally close to a zero-sum trading environment, meaning buying risk tends to decline as average returns fall further into negative territory. The firm added that XRP investors are now in something close to a “blood in the streets” phase.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
