XRP News Today: XRP Plummets 12.22% as Chris Larsen Sells $175M Triggering $112M Liquidations

XRP experienced pronounced volatility in late July 2025, driven by institutional activity and whale movements, as the token surged to multi-year highs before retreating sharply in a 12.22% single-day decline to $3.04. The sell-off, the largest of the year, coincided with a $175 million transfer from co-founder Chris Larsen’s wallet and Brazil-based VERT’s announcement of a $130 million tokenization project on the XRP Ledger. These events triggered widespread liquidations across exchanges like Upbit, with AInvest reporting $89 million in long-position losses and CoinGape citing $112 million in losses [3][4]. Phemex labeled the selloff the largest long squeeze of 2025, noting $81.7 million in XRP futures liquidations within 24 hours and a 149.8% surge in trading volume [2].

The price swings underscored XRP’s sensitivity to on-chain activity and macro-level sentiment. Large investors accumulated 280 million XRP and 310 million DOGE in July, signaling institutional interest amid uncertainty [6]. Ripple’s leadership, including CEO Brad Garlinghouse and CTO David Schwartz, remained silent on the market turmoil, with Schwartz focusing instead on protocol improvements [1]. Analysts attributed the volatility to a convergence of factors: VERT’s project posed a direct challenge to XRP’s utility, while Larsen’s token offload raised concerns about oversupply [1].

Despite the selloff, XRP’s price found brief support at $3.10, with some optimism emerging around regulatory clarity. Arthur Hayes, co-founder of BitMEX, forecasted a 50–100% surge in XRP if U.S. crypto legislation progresses favorably, though this remains speculative [3]. On-chain data indicated robust interest in XRP-related DeFi protocols and exchanges, reflecting technical strength and market confidence [1]. The $130 million allocated to VERT’s project now represents a critical variable for XRP’s trajectory, as participants await clarity on whether the initiative will drive demand or exacerbate supply concerns.

The episode highlighted the fragility of leveraged positions in crypto markets, with Ethereum and Bitcoin also affected as traders adjusted positions [5]. XRP’s resilience at $3.13, despite the selloff, suggested active buyer support, though its long-term direction hinges on resolving regulatory uncertainties and monitoring institutional token movements [7]. Comparative historical trends indicated recovery paths following regulatory and ETF developments, offering cautious optimism for a potential rebound.

Sources:

[1] [XRP News Today: XRP Plummets 12.22% 105M Longs Liquidated](https://www.ainvest.com/news/xrp-news-today-xrp-drops-12-22-105m-longs-liquidated-vert-tokenization-fails-spark-rally-2507/)

[2] [XRP Plummets 12% in Major Long Squeeze](https://phemex.com/news/article/xrp-plummets-12-in-major-long-squeeze-largest-of-2025_13667)

[3] [XRP News Today: XRP Plunges 12% Founder Sells 175M Tokens](https://www.ainvest.com/news/xrp-news-today-xrp-plunges-12-founder-sells-175m-tokens-sparking-market-volatility-2507/)

[4] [XRP Price Prediction as Crypto Market Crash Triggers Record Long Squeeze](https://coingape.com/markets/xrp-price-prediction-as-crypto-market-crash-triggers-record-long-squeeze-is-bull-run-over/)

[5] [Crypto Market Sees $753 Million in Liquidations](https://www.tipranks.com/news/eric-trump-agrees-ether-should-be-over-8k-as-global-m2-money-soars)

[6] [XRP and DOGE Whales Accumulate 280M and 310M ...](https://www.ainvest.com/news/xrp-news-today-xrp-doge-whales-accumulate-280m-310m-tokens-45-2-065-gains-altcoin-season-2507/)

[7] [XRP Price Shows Resilience at $3.13 Despite $140M ...](https://blockchain.news/news/20250726-xrp-price-shows-resilience-at-313-despite-140m-insider-selling)