$1T Crypto Rout: XRP Drops ~25% as AI Tokens Draw Flows
XRP led a sharp market reset on Feb. 6, 2026, tumbling roughly 25% in a single session as the broader crypto market shed about $1 trillion in value overnight. On-chain and exchange data pointed to heavy selling pressure on XRP pairs, amplified by stop-losses and leveraged positions being liquidated. The move left liquidity thin across many smaller markets and pushed Bitcoin and large-cap tokens into defensive territory.
Traders and analysts tied much of the flow to a fast rotation into AI-focused tokens and infrastructure projects, which have been soaking up fresh capital amid the wider risk-off move. The rout highlights persistent vulnerability in highly-levered altcoins and suggests elevated volatility ahead; market participants will be watching on-chain transfers, funding rates and margin activity for signs of stabilization or further downside. Buyers looking for a dip should be prepared for rapid swings and tight liquidity conditions.