XRP Fees Plunge 91.5% as Glassnode Sees Demand Collapse
Glassnode data shows XRP fees collapsing as on-chain demand weakens. XRP’s 90-day network fee average (90D-SMA) fell 91.5% from about 5.9K XRP in Feb 2025 to about 0.5K XRP “today.” Glassnode says this magnitude is not a normal fee-market adjustment, but a near-total contraction in organic transaction demand since the speculative peak.
The report ties the current weakness to earlier market stress. In Nov. 2025, Glassnode noted only 58.5% of XRP supply remained in profit, the lowest share since Nov. 2024. Even with XRP trading near ~$2.15 (around 4x a year earlier), 41.5% of supply—about 26.5B XRP—was still held at a loss.
Glassnode also flagged distribution dynamics: realized profit volume rose roughly 240% (from ~$65M/day to ~$220M/day) while XRP fell from $3.09 to $2.30, suggesting investors were taking gains during declines rather than during strength.
For traders, the key takeaway is that XRP fees are now giving a sharper “usage” signal than price alone. When XRP fees fall this fast, liquidity and real demand can deteriorate, increasing the risk that rallies fade without follow-through.
Bearish
This news is likely bearish because it links a sharp fall in XRP fees with a near-total contraction in organic transaction demand. In past market cycles, when fee/usage metrics deteriorate faster than price, rallies often struggle to sustain—traders may treat the move as a sign that speculative activity has faded.
Short-term, the 91.5% XRP fees drop can pressure sentiment and increase the probability of choppy price action or downside attempts as liquidity thins. Longer-term, the earlier profitability deterioration (rising loss share and “profit-taking into weakness”) suggests distribution may have already been underway, meaning recovery could require a new demand catalyst to reverse the usage downtrend.
However, if XRP’s price stabilizes while fees remain weak, it can also set up a “base-building” period. Traders may watch for a rebound in 90D-SMA fees or realized demand before leaning fully into downside.