XRP investors are deeply in the red – Messari research

  • Over the last few years, XRP price has fallen by 90% from its all-time high price of $3.40. 
  • Crypto experts have speculated that most XRP holders are unprofitable on their XRP investment.
  • A recent analysis by a researcher at Messari has confirmed this narrative. 

Over the last few years, XRP’s price has fallen by about 90% from its all-time high price of $3.40. Owing to the dismal performance of the crypto asset, many experts have speculated that XRP holders have “heavy bags,” meaning that most are unprofitable on their XRP investment. Recent research analysis by Messari has echoed this sentiment. 

Crypto experts believe an efficient way to measure a cryptocurrency’s success is through its realized capitalization. Messari’s Ryan Watkins recently explained that realized capitalization “can be thought of as an estimation of the aggregate cost basis of a cryptoasset.”

A crypto’s realized capitalization is calculated by adding together the value of each coin at the price it was moved on their respective blockchain. As per Messari’s data, XRP’s realized capitalization is around $43 billion, which shows that the average holder acquired their coins at $1.38 each. This means that most of these are “in the red.”

Despite XRP having only closed above $1.00 on just 2.1% of its trading days, the cryptocurrency’s aggregate estimated cost basis is $1.38. This suggests most XRP investors are deeply in the red.

While a majority of XRP holders are already in red, the crypto is expected to plummet in the months and years ahead, according to a CryptoSlate report.
 

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