In a surprising turn of events that has captured the attention of the cryptocurrency community, XRP investors are sounding alarms after a significant transfer involving Ripple co-founder Chris Larsen. This week, Larsen moved a staggering 50 million XRP to exchanges, a maneuver that has raised eyebrows and led many to speculate about potential sell-offs in the future. Is this a calculated strategy or a warning sign for XRP investors? Let’s dive deeper into what this means for the current market.
Just a few days prior to this transaction, XRP had been riding high, reaching nearly $3.60—a peak reminiscent of its glory days. However, that euphoria was quickly dampened by Larsen’s wallet activity, triggering a mixed bag of reactions within the investor community. While some interpreted his move as a strategic profit-taking decision, others saw it as a precursor to potential turmoil. As the saying goes, “What goes up must come down,” and it seems that XRP’s recent rally was short-lived.
The sell-off sentiment intensified when J.A. Maartunn, an analyst from the on-chain data platform CryptoQuant, conveyed a stark warning to the XRP holders on social media. “Don’t get dumped on,” he urged, highlighting the precarious situation that many investors find themselves in. With Larsen still possessing approximately 2.58 billion XRP—valued at a jaw-dropping $8.83 billion—the 50 million XRP transfer is essentially a drop in the ocean of his assets. Maartunn’s remarks have sent ripples of concern, with traders pondering, “If $200 million was just the warm-up… what’s next?”
As a result of these developments, XRP has experienced a sharp correction, plummeting 13% to approximately $3.18. This drop is particularly alarming given the backdrop of wider market volatility, which saw Bitcoin reach a precarious low of $114,500 after an old Satoshi-era wallet moved 80,000 BTC for the first time in over a decade. This unexpected shift triggered over $500 million in liquidations within 24 hours, further shaking investor confidence.
🚨 Chris Larsen (Ripple co-founder) still holds 2.58B $XRP — that’s $8.83B.If $200M was just the warm-up… what’s next?Don’t get dumped on.Don’t be the exit liquidity.Protect yourself. 👇 https://t.co/k152FXlm8N pic.twitter.com/T5CpTQjdDa— Maartunn (@JA_Maartun) July 25, 2025
Despite the turbulence, XRP is not without its silver linings. Recent data indicates a record surge in notional open interest for XRP’s perpetual futures contracts, hitting an all-time high of $8.8 billion—an increase that corresponds to nearly 2.9 billion XRP in open contracts. This rise suggests that traders are still actively engaging with XRP, hinting at some underlying bullish sentiment. Interestingly, the number of wallets holding at least 1 million XRP tokens has also reached an all-time high, with these wallets collectively controlling over 47.32 billion tokens.
The ongoing activity isn’t confined to the market alone. Ripple CEO Brad Garlinghouse recently announced that the company is planning to withdraw its cross-appeal against the SEC, which many see as a pivotal move that could stabilize the regulatory landscape for XRP. As regulators reassess their positions, the cryptocurrency community remains hopeful for a more favorable environment.
As we look ahead, the implications of Larsen’s wallet activity and its impact on XRP price momentum are yet to be fully understood. Will we see further distributions that could potentially weigh down the price, or is this merely a one-off event? Investors are advised to keep a watchful eye on the market dynamics and remain vigilant. After all, in the volatile world of crypto, the tides can turn in the blink of an eye. Have you taken steps to protect your investments amidst the uncertainty? Stay tuned for more updates and insights as this story unfolds!