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Ripple co-founder Chris Larsen’s recent
transactions have reignited concerns among investors, with analysts highlighting the potential for significant market impact. On July 10 and July 25, 2025, wallets linked to Larsen moved $140 million and $175 million worth of XRP to exchanges, respectively [1]. These actions follow a period of price volatility for XRP, which reached a three-year high of $3.60 in early July before retreating below $3 amid heightened selling pressure [2]. J. A. Maartunn, an onchain analyst for CryptoQuant, warned that the remaining 2.58 billion XRP in Larsen’s wallet—valued at approximately $8.83 billion—could amplify downward price trends if further sales occur [3]. “If $200 million was just the warm-up… what’s next?” Maartunn questioned, urging investors to avoid becoming “exit liquidity” for large-scale offloading [3].The cumulative outflows of $315 million from Larsen’s wallet over two weeks have drawn scrutiny, particularly as XRP’s price has struggled to recover. CoinGlass data indicates a 10.33% drop in XRP’s value following the July 15 withdrawals, aligning with broader patterns of whale-driven volatility [4]. The July 25 transfer alone—50 million XRP (~$175 million)—triggered an immediate 14% decline in XRP/USD, with analysts attributing the move to anticipated further selling [5].
Market observers note that Larsen’s holdings represent a concentrated liquidity risk, given the token’s limited circulating supply relative to its market capitalization. While Ripple’s partial legal victory against the SEC briefly boosted XRP’s price in early July, the potential for large-scale sales from high-profile wallets remains a persistent risk factor. The $9 billion sellable portion in Larsen’s wallet could exacerbate downward momentum, particularly if the market interprets the sales as opportunistic rather than reflective of long-term confidence.
Regulatory uncertainty surrounding
and XRP continues to shape market sentiment. Despite a recent court decision favoring Ripple’s legal arguments, the broader legal landscape for XRP remains unresolved. Analysts emphasize that future price stability may depend on regulatory clarity or increased institutional adoption, though the concentration of XRP in a few major wallets complicates such outcomes. As of late July 2025, XRP/USD trades 13% below its all-time highs, reflecting the dual pressures of legal developments and liquidity risks from major holders.Sources:
[1] Ripple co-founder transfers $140 million of XRP to the exchange! [https://coincentral.com/ripple-co-founder-transfers-140-million-of-xrp-to-the-exchange-xrp-falls-rich-miner-allows-users-to-avoid-losses/](https://coincentral.com/ripple-co-founder-transfers-140-million-of-xrp-to-the-exchange-xrp-falls-rich-miner-allows-users-to-avoid-losses/)
[2]
Whale Dumps $9B, Altcoins Whipsaw, NFTs Boom [https://ts2.tech/en/bitcoin-whale-dumps-9b-altcoins-whipsaw-nfts-boom-and-regulators-swoop-crypto-news-roundup-july-25-26-2025/](https://ts2.tech/en/bitcoin-whale-dumps-9b-altcoins-whipsaw-nfts-boom-and-regulators-swoop-crypto-news-roundup-july-25-26-2025/)[3] XRP wallet linked to Chris Larsen still has $9B to sell, analyst warns [https://cointelegraph.com/news/xrp-wallet-linked-to-chris-larsen-still-has-9b-to-sell-analyst-warns](https://cointelegraph.com/news/xrp-wallet-linked-to-chris-larsen-still-has-9b-to-sell-analyst-warns)
[4] XRP News Today: XRP plummets 10.33% as whale outflows trigger speculative exit [https://www.ainvest.com/news/xrp-news-today-xrp-plummets-10-33-whale-outflows-trigger-speculative-exit-2507/](https://www.ainvest.com/news/xrp-news-today-xrp-plummets-10-33-whale-outflows-trigger-speculative-exit-2507/)
[5] Bitcoin Whales Bet Big,
ETFs Shatter Records [https://macholevante.com/bitcoin-whales-bet-big-ethereum-etfs-shatter-records-crypto-news-roundup-july-25-26-2025/](https://macholevante.com/bitcoin-whales-bet-big-ethereum-etfs-shatter-records-crypto-news-roundup-july-25-26-2025/)
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