The Crypto Basic

The digital asset market is entering a new phase with more institutional investors preparing to expand their exposure to XRP.

This shift comes as regulation improves, technology advances, and more capital flows into the space. In a recent statement, Evernorth CEO Asheesh Birla said that progress in Washington, along with rising on-chain activity, could drive a change in how traditional financial markets engage with blockchain assets.

Key Points

Regulatory Breakthrough as Turning Point

According to Birla, two key developments in March could mark the end of a long-standing regulatory stalemate.

On March 17, the U.S. SEC and CFTC issued their first joint guidance classifying certain digital assets, including XRP, as commodities under federal law. This distinction reinforces XRP’s existing legal clarity following its court outcome with Ripple.

Just days later, lawmakers introduced a bipartisan compromise on a key provision of the proposed CLARITY Act, with a committee review expected later this month.

Birla noted that while each development is significant on its own, together they represent something the industry has long lacked: regulatory definition and legislative momentum.

Institutional Capital Begins Flowing Into XRP

Beyond regulation, capital inflows are beginning to reflect institutional confidence. Birla highlighted that spot XRP ETFs in the United States have already attracted over $1 billion in net inflows since launching last year.

At the same time, a joint survey by Coinbase and Ernst & Young found that the proportion of institutional investors planning to gain exposure to XRP could rise to 25% in 2026, up from 18% currently.

This trend is supported by rising network activity. The XRP Ledger recently recorded a two-year high of 4 million daily transactions, reflecting strong engagement across its ecosystem.

XRP Ledger Sees Rapid Growth in On-Chain Finance

The infrastructure behind XRP is also expanding rapidly in tokenized assets and decentralized finance. Real-world asset (RWA) tokenization on the XRP Ledger has surged from just $24.7 million at the start of 2025 to over $2 billion by March 2026.

Meanwhile, the network now hosts around 27,000 automated market maker pools, with XRP pairs dominating decentralized exchange routing.

Birla stressed that the focus for institutions is shifting beyond simple transaction speed. Instead, attention is moving toward capital efficiency: how XRP can function as collateral, liquidity, and a base layer for financial instruments within a growing on-chain ecosystem.

Evernorth Positions Itself as Institutional Bridge

Amid these developments, Evernorth is positioning itself as a gateway for institutional capital into the XRP ecosystem.

The company plans to go public via a merger with Armada Acquisition Corp. II. It aims to combine public market access with active on-chain participation.

Its strategy involves holding XRP and deploying it across the XRP Ledger to provide liquidity and support financial infrastructure.

Birla stressed that this approach differs from simply holding XRP as an asset as it offers exposure to its role in emerging financial systems.

Familiar Pattern in Market Evolution

Birla compared the current stage of digital assets to past financial transformations, such as the rise of electronic equity trading and the expansion of global FX markets.

In those cases, technology existed long before widespread adoption. It was only when regulation and institutional capital aligned that growth accelerated rapidly and became irreversible.

According to Birla, digital assets and XRP, in particular, are now entering that same phase. As this alignment strengthens, XRP’s role will evolve from a fast-settlement tool to a core component of next-generation financial infrastructure.

Grayscale has reaffirmed the progress made by the XRP Ledger (XRPL) developer community in addressing the growing quantum threat.

Grayscale recently released a report that referenced research from Google on the risks linked to the fast growth of quantum computing and its possible impact on blockchain security. In the report, XRP stood out as one of the networks already taking steps to deal with this emerging threat.

Key Points

• Grayscale cited Google research warning that quantum computing’s progress could pose a threat to blockchain security.
• Google identified post-quantum cryptography as a solution, with networks like XRP Ledger already testing it.
• The XRP Ledger has advanced quantum readiness by testing ML-DSA signatures and enabling key rotation, among others.
• The report emphasized that the level of quantum risk depends on the blockchain design.

Google Paper Warns Against Delayed Action

The report, authored by Zach Pandl, Head of Research at Grayscale, called attention to the urgency of preparing for a post-quantum future. 

Pandl explained that in the mid-1990s, MIT mathematician Peter Schor created an algorithm that could allow quantum machines to solve the complex problems behind today’s encryption. Even after nearly 30 years, no computer can run this algorithm at scale yet, but estimates suggest this could change within the next few years.

Grayscale referred to a recent paper from Google Quantum AI, which stressed that the uncertainty around timelines makes early action important. The research warned that progress in quantum computing may not happen gradually but could come in sudden jumps, which increases the risk of waiting too long.

The paper suggested that reaching this level of capability may require about 1,200 to 1,450 logical qubits, an important measure of computing power. 

While that point has not been reached, both Google and Grayscale believe blockchain networks should start preparing now. They noted that there is still a lot of work to do, including technical upgrades, community agreement, and handling possible side effects like lower transaction speeds.

XRP Already Making Progress

The Google research also stressed that this challenge can be solved. It mentioned a forward through the use of post-quantum cryptography. Notably, this field has already developed tools that experts have tested, reviewed, and even deployed in real systems.

These cryptographic methods already protect internet traffic and some blockchain activities. Grayscale pointed out that networks like Solana and the XRP Ledger have started testing these solutions. This early effort shows that some blockchains are not waiting but are already preparing for future risks.

For context, Google’s 2026 research highlighted the XRP Ledger as one of the few networks already testing post-quantum cryptography in real conditions. The research spotlighted XRPL’s progress, especially its use of key rotation, which helps improve security for tokenized real-world assets.

Notably, XRPL has been working toward quantum resistance by testing new cryptographic standards approved by NIST on its developer network, AlphaNet. 

In December 2025, developers added CRYSTALS-Dilithium, now ML-DSA, to support quantum-resistant transactions, accounts, and consensus. This replaces older systems like ECDSA secp256k1 and Ed25519 with signatures that are about 2,420 bytes in size.

The network also allows built-in key rotation, meaning it can upgrade its cryptography through validator agreement without stopping the system or affecting user accounts. These features are still being tested and are not yet live on the main network, but they show progress.

Quantum Vulnerability Varies Across Blockchain Designs

The Grayscale report explained that not all blockchains face the same level of risk. The level of exposure depends on how each network is built. 

For instance, systems that use the UTXO model, like Bitcoin, differ from account-based systems like Ethereum. Other factors include whether a network uses proof-of-work or proof-of-stake, supports smart contracts, or has special setup processes for privacy tools.

Grayscale noted that Bitcoin may face fewer technical risks because of its design, which includes the UTXO model, proof-of-work, and no native smart contracts. Some address types are also safer if they are not reused. 

However, the bigger challenge is in decision-making. The community still needs to agree on what to do about coins with lost or inaccessible private keys. Options include burning them, leaving them untouched, or slowing how they can be spent. Reaching an agreement may be difficult, especially given Bitcoin’s history of debates.

As XRP struggles to regain momentum, fresh on-chain data shows that most holders are now sitting on significant losses.

The asset is trading around $1.31, down 2.14% on the day. This extends a broader decline that has seen it fall by more than 60% from its July 2025 peak of $3.66.

Recent insights from Santiment reveal that the average XRP wallet active over the past year is down roughly 41% on its holdings. This has pushed the MVRV (Market Value to Realized Value) ratio to its lowest level since the FTX collapse, a period widely associated with extreme market stress and forced capitulation.

Key Points

Deep Losses for XRP Holders

The MVRV metric measures whether traders are in profit or loss, and current levels suggest that XRP investors are deep in negative territory. According to Santiment’s analysis, this goes beyond a simple price drop; it reflects actual realized losses among market participants.

Historically, such deeply negative returns point to what traders describe as a “blood in the streets” phase, when selling pressure begins to run out. Glassnode noted that in zero-sum markets like crypto, this environment tends to reduce downside risk, as a large portion of weaker hands have already exited their positions.

Glassnode Data Confirms Persistent Selling Pressure

Supporting this trend, data from Glassnode shows that more than half of XRP’s circulating supply is currently underwater.

Investors who bought above $2 over the past year have been consistently realizing losses. Specifically, daily realized losses have ranged between $20 million and $110 million since November 2025.

According to Glassnode, only 43.4% of XRP supply remains in profit, marking the lowest level since July 2024. This reflects sustained selling pressure, as holders continue to exit positions at a loss, contributing to XRP’s inability to stage a strong recovery.

Opportunity Zone in Play

Meanwhile, the combination of falling MVRV and declining supply in profit suggests a market reset. While short-term sentiment remains weak, these conditions have historically aligned with late-stage corrections, where long-term investors begin to accumulate.

Notably, Santiment data confirms XRP is now in an “opportunity zone,” which typically occurs when the MVRV ratio falls to around -30%. With the one-year MVRV at -41%, history suggests a potential 63% upside opportunity in the coming months.

Specifically, Santiment noted that the last time XRP’s MVRV ratio reached -41% was in December 2022, which preceded a 63% gain over 4.5 months. If history repeats, today’s XRP dip buyers could become significantly profitable by August. However, this remains uncertain.

Ultimately, XRP’s price remains under pressure, but the data points to a potentially promising setup.

As losses mount and weaker participants exit, the market may be quietly forming a more stable base that could eventually support a recovery when broader conditions improve.