Most Digital Asset Treasuries (DATs) are facing growing unrealized losses as the overall crypto market capitalization continues to fall. Companies that believe in XRP’s long-term value and hold it as a treasury asset, including Evernorth, are in a similar situation.
Despite these challenges, signals from retail investors and several positive developments within the Ripple ecosystem offer hope of a potential XRP recovery.
SponsoredEvernorth Faces a $380 Million Unrealized Loss.
Evernorth Holdings, one of the world’s largest XRP holders, is under significant financial pressure as XRP prices continue to slide.
According to CoinGecko data, Evernorth currently holds 473,276,430 XRP, representing about 0.473% of the circulating supply. The current value of this holding is estimated at approximately $684.7 million.
The company made two major purchases in October and November last year. It has not added to its position since then.
Data from CryptoQuant shows that Evernorth’s unrealized losses have increased steadily over the past few months. The figure now exceeds $380 million as XRP trades below $1.50.
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BeInCrypto has reported similar situations across other DATs. BitMine is facing nearly $7 billion in unrealized losses while holding more than 4.28 million ETH. Strategy is also down over $4 billion as Bitcoin prices fall below $71,000.
The price downturn in XRP and altcoins overall is placing a growing financial strain on these companies. Raising new capital through equity issuance or debt could become more difficult. Investors may hesitate to fund firms showing heavy treasury losses.
In a worst-case scenario, companies that need urgent cash for debt repayment or operating expenses may be forced to sell assets and incur losses. Such sales could further depress altcoin prices.
Charles Edwards, founder of Capriole Investment, has described the DAT model as a “leverage explosion waiting to happen.” He compared the rapid expansion of DATs to the investment trust boom of the 1920s. He warned that the current consequences facing the crypto market could be even more severe than those of the Luna and FTX collapses.
SponsoredPositive News Helps XRP Absorb Selling Pressure
Santiment data shows that retail investors remain optimistic about XRP at current price levels. This stands in contrast to growing pessimism toward Bitcoin (BTC) and Ethereum (ETH).
This optimism appears to be driven by a wave of positive XRP-related news. One example is the integration of Hyperliquid into Ripple Prime, Ripple’s flagship prime brokerage platform for institutions. Another key development is the launch of XRPL Permissioned Domains on February 4, 2026, following approval from more than 91% of validators.
SponsoredMeanwhile, CryptoQuant analyst CryptoOnchain noted that XRP open interest on Binance has dropped to its lowest level since November 2024, falling to $405.9 million.
This decline suggests a major leverage “flush.” With open interest at such low levels, XRP prices become less sensitive to volatility caused by long or short squeezes. This environment supports a market reset and improves the chances of a healthier recovery.
“This ‘clean slate’ in the derivatives market is often a prerequisite for a sustainable trend reversal. With heavy leverage removed, selling pressure from forced liquidations declines. If spot demand, as hinted by high on-chain velocity, steps in, the price can recover more organically without the drag of over-leveraged long positions.” CryptoOnchain said.
However, a short-term rebound may not be enough to offset Evernorth’s unrealized losses. With an average entry price of around $2.40, XRP would need to rise roughly 70% from $1.43 at the time of writing. Reaching that level would require substantial new capital inflows alongside a broader market recovery.
