THE PRICE OF CONVICTION: EVERNORTH FACES $200M PAPER LOSS AS XRP SLUMP ENDS A 2-YEAR WINNING STREAK

As 2025 draws to a close, the institutional adoption of XRP is facing a major stress test. Evernorth, currently the largest institutional holder of XRP, is sitting on more than $200 million in unrealized losses following a 25% price decline since the firm first announced its crypto treasury plans. Despite the firm’s vocal conviction that XRP is “the most important asset of the internet,” the sharp fourth-quarter downturn has pushed the token below its yearly opening price, threatening to end a two-year streak of positive annual returns for the asset. I. High-Stakes Accumulation in a Downward Market Evernorth’s aggressive strategy to build a massive XRP treasury has met significant headwinds as market momentum shifted: The $1 Billion Ambition: In October 2025, the Nevada-based firm set out to raise $1 billion to establish the world’s largest public XRP treasury. On November 4, it made a massive purchase of 84.36 million XRP at an average price of $2.54 per token.Current Standing: These high-priced acquisitions pushed Evernorth’s total holdings to over 473.27 million tokens. However, with XRP currently trading near $1.87, the value of these holdings has plummeted, resulting in a paper loss exceeding $200 million.Broader Institutional Pain: Evernorth is not alone in its fourth-quarter struggles. BitMine is reportedly facing a $3.5 billion unrealized loss on its Ethereum position, while Bitcoin-focused treasuries like Metaplanet are down nearly 19%. II. XRP’s “Loss Streak” and Supply Stress The price slump has created a challenging environment for the broader XRP ecosystem beyond just its institutional backers: Circulating Supply Underwater: Data from CryptoQuant reveals that nearly half of XRP’s circulating supply is currently held at a loss. This widespread “paper loss” among retail and institutional holders alike often leads to increased selling pressure as investors lose patience.Annual Performance Reversal: After rallying 81% in 2023 and 238% in 2024, XRP is on track to close 2025 down approximately 11%. This reversal marks a significant break in the asset’s post-regulatory-clarity momentum.Network Activity Fatigue: Supporting this decline is a noticeable drop in network engagement, with active addresses hitting monthly lows. Without a surge in on-chain utility or fresh demand, the $2.54 “Evernorth level” remains a distant target. III. Conclusion: The Long-Term Institutional Bet The short-term outlook for XRP and Evernorth is one of “maximal pain” and structural testing. While the $200 million loss is substantial, the firm has reiterated its commitment to building a long-term, institutional-grade treasury with compounding yield. For Evernorth’s bet to pay off, XRP must not only stabilize but reclaim the $2.54 mark a goal that currently requires a 35% rally from current levels. As we enter 2026, the market will be watching to see if Evernorth’s conviction-driven accumulation serves as a foundation for a recovery or a cautionary tale of institutional “catching the knife.” ⚠️ Important Disclaimer This analysis is for informational and educational purposes only and is based on analyst reports, firm statements, and on-chain metrics. It is not financial advice, nor should it be construed as a recommendation to buy, sell, or hold any security or cryptocurrency. Institutional holdings in volatile assets carry extreme risks, including total capital loss. Readers must conduct their own comprehensive research (DYOR) and consult with a qualified professional before making any investment decisions.