Most Digital Asset Treasuries (DAT) are now facing increasingly larger unrealized losses as the overall market capitalization of cryptocurrency continues to decline. Companies that believe in the long-term value of XRP and hold it as a treasury asset, including Evernorth, are also experiencing a similar situation.

Despite facing these challenges, signals from retail investors and some positive developments within the Ripple ecosystem provide hope for potential recovery of XRP prices.

Evernorth Faces US$380 Million in Unrealized Losses.

Evernorth Holdings, one of the largest XRP holders in the world, is now under significant financial pressure as the price of XRP continues to decline.

According to CoinGecko data, Evernorth currently holds 473,276,430 XRP, which represents about 0.473% of the total circulating supply. The value of this holding is now estimated at around US$684.7 million.

The company made two large purchases in October and November last year. Since then, the company has not added new positions.

Data from CryptoQuant shows that Evernorth's unrealized losses have slowly increased over the past few months. The amount of losses has now exceeded US$380 million as the price of XRP trades below US$1.50.

BeInCrypto has reported a similar situation in another DAT. BitMine is facing nearly US$7 billion in unrealized losses while holding over 4.28 million ETH. Strategy also experienced a decline of more than US$4 billion as the price of Bitcoin dropped below US$71,000.

The decline in the price of XRP and altcoins in general is putting increasing financial pressure on these companies. Efforts to raise new capital through equity or debt issuance may become more difficult. Investors tend to hesitate to fund companies whose treasury performance shows large losses.

In the worst-case scenario, companies that need quick funds to settle debts or operational costs may be forced to sell their assets and record losses. Such actions could further pressure altcoin prices.

Charles Edwards, founder of Capriole Investment, stated that the DAT model is a 'leverage explosion waiting to happen.' He compared the rapid expansion of DAT to the investment trust boom of the 1920s. He warned that the consequences currently facing the crypto market could be worse than the collapses of Luna and FTX.

Positive News Helps XRP Absorb Selling Pressure

Santiment data shows that retail investors remain optimistic about XRP at the current price levels. This is in contrast to the growing pessimism towards Bitcoin (BTC) and Ethereum (ETH).

This optimistic attitude seems to be driven by a wave of positive news regarding XRP. One example is the integration of Hyperliquid into Ripple Prime, Ripple's main prime brokerage platform for institutions. Another important development is the launch of XRPL Permissioned Domains on February 4, 2026, after receiving approval from more than 91% of validators.

Meanwhile, CryptoQuant CryptoOnchain analysts explained that open interest in XRP on Binance has fallen to its lowest level since November 2024, which is now only US$405.9 million.

This decline signals a massive leverage 'flush.' With very low open interest, the price of XRP becomes less susceptible to volatility caused by long or short squeezes. This condition supports market resetting and increases the chances of a healthier recovery.

'A clean slate' in derivative markets like this is often a prerequisite for a sustainable trend reversal. Once heavy leverage is wiped out, selling pressure from forced liquidations will decrease. If spot demand, as indicated by high on-chain velocity, begins to come in, prices can recover more organically without the burden of high leveraged long positions,” explained CryptoOnchain.

However, the short-term rally may not be enough to cover Evernorth's unrealized losses. With an average entry price of around US$2.40, XRP needs to rise about 70% from US$1.43 at the time of publication. To reach that level, a significant influx of new capital and broader market recovery is needed.