XRP News Today: Ripple co-founder transfers $175 million in XRP sparking market volatility and 10.3% price drop

Ripple co-founder Chris Larsen transferred approximately $175 million in XRP between July 17 and July 27, 2025, sparking market volatility and scrutiny. On-chain analysis by ZachXBT revealed that 50 million XRP—equivalent to $175 million at the time—was moved to three exchange-connected addresses and two new wallets, with $30 million directed to Coinbase [1]. The transactions occurred as XRP approached its all-time high of $3.65 on July 18, though the token subsequently declined by 10.3% on July 23, wiping out $7.3 million in long positions on Binance [1].

The sale raised concerns about "exit liquidity," with on-chain analyst JA Maartun criticizing Larsen for "dumping" $200 million in a 10-day window [1]. Critics highlighted the timing, as XRP’s price dipped below $3.30 during the period before stabilizing near $3.11. Blockchain forensics firm Lookonchain noted that Larsen still holds 2.81 billion XRP, valued at roughly $8.4 billion, though this has decreased from his initial 2012 allocation of 9 billion tokens [1]. The remaining supply underscores potential market manipulation risks, particularly amid ongoing legal disputes between Ripple and the U.S. Securities and Exchange Commission (SEC) over XRP’s classification [2].

Exchange reserves for XRP have risen steadily since May 2025, according to AMBCrypto and CryptoQuant. The total increased from 2.75 billion to 2.98 billion tokens by July 24, a metric often associated with distribution phases [1]. However, this surge coincided with XRP hitting an all-time high, complicating interpretations of market sentiment. Derivatives traders faced significant liquidations, with $25.33 million in positions—$16.42 million in longs—wiped out in 24 hours as leverage ratios spiked [1].

Analysts suggest XRP’s $2.9–$3 range remains a critical support zone, offering a potential floor for consolidation before further gains [1]. While Larsen’s actions intensified short-term bearish pressure, historical comparisons to Jed McCaleb’s earlier XRP sales—completed in 2022—highlight divergent approaches among co-founders. McCaleb retained a smaller allocation, contrasting with Larsen’s larger remaining stake [1].

The broader market reaction reflects lingering uncertainty about institutional selling in crypto. Though causation between large transfers and price drops is not definitive, the timing of Larsen’s transactions amplified skepticism about Ripple’s leadership amid regulatory scrutiny. The $3.11 price point as of July 27 suggests buyers remain active, but derivatives cooling and spot market stabilization will be key indicators of near-term direction [1].

Source:

[1] [Bitcoinist.com](https://bitcoinist.com/ripple-co-founder-offloads-200-million-xrp-10-days/)

[2] [AMBCrypto](https://ambcrypto.com/ripple-co-founder-moves-175m-in-xrp-market-reaction-explained/)