Altcoin Market Sentiment Shifts as Large-Caps Face Historic Realized Losses

TL;DR:

• ETH, SOL and XRP face largest realized losses since April, with much of their supply now underwater.
• A surge in recent losses pressures holders; many may exit, risking deeper sell-offs and price declines.
• Loss of confidence in major altcoins leads investors to reassess risk — capital may shift away unless strong catalysts emerge.

Large-cap altcoins such as Ethereum (ETH), Solana (SOL) and XRP are losing their appeal among many crypto investors, after registering the biggest realized losses seen since April. On-chain data shows a growing share of these coins sitting at a loss — meaning more holders bought at higher prices and now face paper losses. That shift is eroding confidence in what once were cornerstone assets in many portfolios.

Here’s the percent of supply in loss, for top assets:

🟠 BTC: 34.91%
⚫ XRP: 36.70% l
🔵 ETH: 38.37%
🟣 SOL: 74.84%

📉https://t.co/YuJxYtm0uY https://t.co/oPr1Ck1hgI pic.twitter.com/vrYhvPCl5d

— glassnode (@glassnode) November 25, 2025

Supply losses and investor fatigue weigh on altcoins

Recent metrics from supply-in-profit data reveal a steep drop in the percentage of ETH, SOL and XRP whose last transaction cost was below current price. In contrast, an increasing share of supply is now underwater. For example, SOL shows roughly 75% of supply in loss, while ETH and XRP each register over 35% in loss territory. This structural shift suggests many holders may be unwilling to sell at a loss — yet the overhang dampens upside potential.

That pressure is further exacerbated by rising realized-loss averages over the past week, especially among coins bought during recent dips. For new entrants who bought high and saw prices tumble, the temptation to cut losses is real. Analysts warn that continued downward pressure on large-cap altcoins could trigger a broader sell-off if holders exit en masse seeking to preserve capital.

Amid this backdrop, some investors are reconsidering their portfolios. As large-cap altcoins struggle to recover, capital may flow toward smaller-cap projects with undervalued fundamentals, or toward safer assets altogether. The shift reflects a broader reevaluation of risk-reward in crypto, where past performance and scale no longer guarantee safety.

The fall of large-cap altcoins doesn’t just reflect price declines: it underscores a deeper change in sentiment. What were once seen as “blue-chip” crypto assets are now viewed with skepticism, especially by newer investors. Until clear catalysts — such as bullish macro conditions or renewed adoption — emerge, many believe altcoins may remain out of favor.

Heavy losses, diminished supply-in-profit and growing investor wariness have combined to weaken large-cap altcoins’ standing. The window for recovery remains open, but only if market conditions improve and confidence returns.