This large movement triggered market volatility and raised fresh concerns about insider activity, decentralization, and XRP’s future outlook.

XRP Dips Following $175 Million Whale Transfer

XRP has come under pressure after blockchain analysts detected large-scale token transfers linked to Ripple co-founder Chris Larsen. Between July 17 and July 24, Larsen’s wallet reportedly moved 50 million XRP—valued at approximately $175 million at the time—to multiple addresses, with $140 million believed to have been sent to centralized exchanges.

Chris Larsen moved $175M worth of XRP, causing price drop concerns. Source: ZachXBT via X

This move sparked immediate concern among traders, as such large transfers are widely interpreted as intentions to liquidate holdings, particularly when directed to exchanges. Historically, large amounts of tokens are not stored on exchanges for long periods unless a sale is imminent.

As a result, the xrp price dropped over 14%, falling from a local high of $3.65 to nearly $3.08. This steep correction came amid speculation that the transfer could flood the market with XRP, thereby triggering further downside pressure.

Timing Raises Questions, Market Responds with Volatility

The timing of these transfers raised eyebrows in the crypto community. They occurred shortly after XRP reached a new all-time high of $3.65, its highest level since 2021. Shortly afterward, the price of XRP today tumbled below the $3 mark before rebounding modestly. According to CoinGecko data, XRP had hit a one-month peak of $3.56 on July 22, reinforcing concerns that the sharp decline was linked to founder-linked sell-offs.

XRP has broken out of its accumulation pattern, showing strong momentum similar to previous major cycle tops, hinting at a significant upward price move ahead. Source: TradingShot on Tradingview

CryptoQuant’s on-chain metrics also confirmed a visible drop in Larsen’s wallet balance that directly aligned with the decline in market price. Trading volumes surged as the news spread, showing that market participants were reacting strongly to the perceived insider movement.

In the midst of the sell-off, XRP long positions saw a massive liquidation of more than $105 million. This made XRP the second-largest liquidation among altcoins during a broader $735 million market correction on Thursday, amplifying the panic.

A Familiar Pattern: Insider Activity Mirrors Past Cycles

This isn’t the first time XRP has faced turbulence following movements by insiders. Historical data from earlier bull cycles has revealed that wallet activity from Ripple’s founders often coincided with major market peaks. During the 2017–2018 bull run, similar patterns of token transfers and subsequent price corrections were observed.

Earlier this year, Larsen reportedly moved over $344 million worth of XRP in January 2025 alone. These included an $8 million transfer to Coinbase on July 15 and 16, when xrp.price hovered near $3.25. This pattern adds to concerns among investors who fear repeated sell-offs from large holders might cap XRP’s upside potential.

Despite these recent sales, wallets linked to Larsen still hold a significant amount of XRP—between 2.6 and 2.81 billion tokens. At current price levels, this holding is valued at over $8 billion, representing about 4.6% of XRP’s total market capitalization.

Community Divided: Profit-Taking or Centralization Risk?

The XRP community is sharply divided in response to these developments. Some investors view Larsen’s actions as part of Ripple’s long-term decentralization strategy, believing such token distributions were always part of the plan. However, others perceive the moves as opportunistic, arguing that such large-scale sales hurt retail investors by dragging down market prices at key moments.

XRP is showing strong signs of a big price move upward. Source: BarriC via X

This tension is compounded by the resurfacing of a 2012 agreement between Ripple’s founding members—Chris Larsen, Jed McCaleb, and Arthur Britto—which detailed the original allocation of XRP tokens. The agreement revealed that Britto received 2% of all XRP tokens and was granted lifetime rights to develop on the XRP Ledger (XRPL) without needing approval from the company. Such distribution models raise ongoing concerns over the centralization of XRP, a point that critics say undermines the token’s claim to be decentralized.

This issue is particularly relevant as Ripple continues to deal with the implications of the XRP lawsuit brought by the U.S. Securities and Exchange Commission (SEC). The concentration of XRP among its early insiders continues to be cited in discussions around regulatory compliance and investor transparency.

Institutional Tailwinds and Global Catalysts Still in Play

Despite recent volatility, XRP’s fundamental and institutional metrics remain robust. At the time of writing, the XRP price today is hovering around $3.50 as both retail and institutional interest continue to support the asset. Open interest in XRP futures has surged nearly 143%, climbing toward $10 billion. This level of market activity reflects a strong appetite among traders, even amid uncertainty.

XRP was trading at around $3.068, down 5.14% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Several macroeconomic and geopolitical developments are helping sustain this momentum. A newly signed U.S.–Japan trade agreement, which imposes reciprocal 15% tariffs, is expected to accelerate the integration of blockchain-based cross-border payment systems. In addition, a pending U.S.–EU deal could stimulate global capital flow and boost adoption of tokenization strategies by financial institutions. XRP’s low transaction costs and scalability position it as a promising candidate for institutional use in these areas.

Digital liquidity analysts suggest that XRP’s liquidity potential could eventually surpass its market cap limitations—provided institutional adoption continues to accelerate. XRP’s ability to bridge decentralized infrastructure with traditional financial systems may well depend on forthcoming regulatory frameworks.

Final Thoughts

Chris Larsen’s $175 million XRP transfer has once again spotlighted the tension between insider control and market trust. While Ripple has made strides in building institutional confidence and real-world utility, the centralization concerns and lack of public communication from leadership have introduced fresh uncertainty.

Still, XRP continues to demonstrate strong market resilience. With daily active wallets exceeding 300,000, a market cap around $210 billion, and rising global use cases, the ripple crypto ecosystem shows signs of growth despite the turbulence.

As regulatory updates, market trends, and founder activity continue to influence sentiment, investors are keeping a close eye on whether xrp ripple can sustain momentum—or if more volatility lies ahead.

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Filed under: Bitcoin - @ July 25, 2025 8:28 pm