XRP News: Shocking $175M Ripple Co-Founder Transfer Triggers Price Plunge

The cryptocurrency world was recently gripped by a seismic event as breaking XRP News revealed a massive transfer by Ripple co-founder Chris Larsen. A staggering $175 million worth of XRP moved, sending shockwaves through the market, triggering a notable 15% price drop, and leading to significant liquidations. This wasn’t just another transaction; it was a move that amplified market volatility and left many investors pondering the immediate future of one of the crypto industry’s most talked-about assets.

The Shocking $175M Chris Larsen XRP Transfer: What Exactly Happened?

Between July 17 and July 24, 2025, Ripple co-founder Chris Larsen executed a series of substantial Chris Larsen XRP transfers. These movements involved approximately 50 million XRP tokens, valued at an astonishing $175 million at the time. Blockchain analytics quickly identified that these funds were directed to various destinations: three exchange-connected addresses and two newly created wallets. Notably, blockchain analyst ZachXBT pointed out that a significant portion, around $30 million, was sent to Coinbase. This specific transfer was widely interpreted by market observers as a precursor to selling, given Coinbase’s role as a major trading platform.

Understanding the Immediate XRP Price Drop and Market Reaction

The timing of Larsen’s transfers coincided with a period of heightened activity for XRP. Just before the major transfers, XRP had soared to a remarkable record high of $3.65 on July 18. However, the market’s reaction to the subsequent transfers was swift and brutal. Over the following week, the token experienced a sharp 15% pullback from its peak. This sudden XRP price drop underscored the market’s sensitivity to large movements from prominent figures. Investors, anticipating potential sell-offs, reacted by offloading their holdings, contributing to the downward pressure.

The Ripple Effect: Massive Crypto Liquidations and Exchange Reserves

The price volatility didn’t stop at a simple drop; it triggered a cascade of consequences, particularly in the derivatives market. On July 23, a single day saw XRP fall by 10.3%, directly leading to $7.3 million in long-position liquidations on Binance alone, as highlighted by analyst Darkfost of CryptoQuant Insights. This was part of a larger trend, with CoinGlass data revealing a staggering $16.42 million in total long liquidations within a 24-hour period. For those unfamiliar, liquidations occur when a trader’s leveraged position is automatically closed due to insufficient margin, often accelerating price declines. This dramatic surge in crypto liquidations painted a clear picture of the immense pressure on traders betting on higher prices.

Adding another layer of complexity, exchange reserves for XRP have been steadily climbing since May, increasing from 2.75 billion to 2.98 billion tokens by July 24, according to AMBCrypto. While an increase in exchange holdings often signals a potential distribution phase by holders, the fact that this rise happened concurrently with XRP’s all-time high makes its interpretation more nuanced. Is it preparing for a sell-off, or simply a rebalancing of assets?

Navigating the Future of Ripple XRP: Centralization Concerns and Market Stability

Larsen’s actions have inevitably drawn scrutiny, reigniting debates about centralization within the XRP ecosystem. Blockchain forensics firm Lookonchain estimates that Larsen’s remaining holdings are substantial, totaling 2.81 billion XRP, valued at over $8.4 billion at current prices. Critics frequently point to the concentration of supply among early stakeholders, including Larsen’s historical allocation of 9 billion XRP from Ripple’s founding in 2012, as a significant centralization risk. Such large individual holdings mean a single entity can exert considerable influence on market dynamics through their transactions.

Despite these concerns and the short-term sell-off, Ripple XRP has demonstrated resilience. The token found crucial support near the $3.00 level, with analysts suggesting that the $2.9–$3 range could serve as a psychological floor. This price consolidation period might allow both derivatives and spot markets to stabilize, potentially paving the way for future upward movement. At press time, XRP traded at $3.11, reflecting its ability to withstand significant market pressure amidst broader corrections. It’s important to note that Larsen’s team has not commented on these specific transactions, and no direct link has been established between these transfers and Ripple’s ongoing SEC litigation concerning XRP’s classification.

The recent XRP News surrounding Chris Larsen’s substantial transfer serves as a powerful reminder of the delicate balance in crypto markets. Large institutional movements, especially from foundational figures, can profoundly influence sentiment and price action due to inherent liquidity imbalances. While these sales haven’t definitively altered XRP’s long-term trajectory, they certainly underscore the ongoing challenges. These include navigating regulatory uncertainties, managing investor confidence in assets with concentrated ownership, and adapting to rapid market shifts. As the crypto landscape continues to evolve, vigilance and a deep understanding of market dynamics remain paramount for all participants.

Frequently Asked Questions (FAQs)

Here are some common questions regarding the recent XRP market activity:

• Who is Chris Larsen and what was his recent XRP transfer?
  Chris Larsen is a co-founder of Ripple. He recently transferred approximately 50 million XRP, valued at $175 million, to various exchange-connected addresses and new wallets between July 17 and July 24, 2025.
• How did the XRP market react to this transfer?
  The market reacted sharply, with XRP experiencing a 15% price drop from its peak of $3.65 and triggering significant liquidations across derivatives markets.
• What are crypto liquidations and how were they impacted?
  Crypto liquidations occur when a trader’s leveraged position is automatically closed due to insufficient funds to cover potential losses. Following the XRP price drop, over $7.3 million in long positions were liquidated on Binance, and $16.42 million overall within 24 hours.
• Why are Chris Larsen’s large XRP holdings a concern for some?
  His substantial holdings (estimated 2.81 billion XRP) raise concerns about centralization risks. Critics argue that such concentrated supply among early stakeholders could allow a single entity to significantly influence market dynamics.
• What is the current outlook for XRP’s price after this event?
  Despite the sell-off, XRP has found support around the $3.00 level. Analysts suggest the $2.9–$3 range could act as a psychological floor, potentially allowing the market to stabilize before further movement.