XRP experienced a significant drop of over 11% from its July 17 high of $3.65, a decline directly correlated with substantial transfers of 50 million XRP from Ripple co-founder Chris Larsen's associated wallets. Blockchain investigator ZachXBT reported that approximately $140 million worth of these tokens were sent to centralized exchanges or off-ramp services, sparking market volatility and reigniting scrutiny over founder-linked holdings.
On-chain data from CryptoQuant reveals a clear correlation: Larsen’s wallet activity surged between July 17 and July 24, precisely coinciding with XRP's recent peak and subsequent price drop. During this period, the cumulative balance of the wallet decreased significantly.
As these large transfers occurred, XRP's price reacted swiftly, falling from its local top near $3.65 to just under $3.25 before showing signs of a partial recovery. This pattern echoes behavior observed in previous market cycles, most notably during the 2017–2018 bull run, where major founder wallet outflows also aligned with price peaks.
Further compounding concerns, on-chain data indicates that Larsen-linked wallets collectively still control over 2.81 billion XRP, valued at approximately $8.4 billion at current prices. This substantial holding creates a potential structural overhang for the token, especially if more of these assets are introduced to the open market. The timing of these transfers, coming just days after XRP's recent all-time high, strongly suggests a deliberate profit-taking strategy.
Adding historical context to the ongoing discussion, a 2012 agreement between Ripple's founders—Chris Larsen, Jed McCaleb, and Arthur Britto—has recently resurfaced on social media. This document confirms that Arthur Britto was granted 2% of all XRP (then referred to as Ripple Credits) and, notably, received lifetime rights to develop on the Ripple protocol without requiring company approval.
This agreement underscores the highly centralized distribution of XRP at its inception, reinforcing long-standing concerns about the significant concentration of supply among early insiders.
The scale and timing of Larsen’s recent transfers hold significant weight. On-chain charts show that the last major outflows from this specific wallet occurred near XRP’s historic 2018 top, fueling concerns about insider-driven price suppression during peak market enthusiasm.
Despite the recent sell-off and the renewed scrutiny, the XRP market has demonstrated a degree of resilience. XRP still remains one of the best-performing large-cap tokens this quarter. While short-term selling pressure undeniably triggered the recent dip, technical indicators suggest strong support levels near $3. Traders are now closely watching for a confirmed rebound that pushes XRP past the $3.40–$3.50 range.
July 2025, Cryptoniteuae