The cryptocurrency world is buzzing with alarming XRP news as recent large-scale transactions by Ripple co-founder Chris Larsen have sent shockwaves through the market. If you’re an XRP holder or keenly watching the crypto space, you’ve likely felt the tremors of a significant price correction following these moves. This isn’t just a minor fluctuation; it’s a development that has triggered widespread discussion and raised questions about market stability.
What Triggered the Significant XRP Price Drop?
The core of the recent market turmoil lies in the substantial offloading of XRP by Ripple’s co-founder and executive chairman, Chris Larsen. Blockchain tracking tools like XRPscan and analyst ZachXBT have highlighted a series of significant transfers:
- On July 16, 2025, Larsen transferred $26 million worth of XRP to Coinbase.
- The following day, July 17, 2025, another $175 million in XRP transactions occurred, involving large allocations to various exchanges and services.
These transactions coincided with XRP hitting a seven-month high of $3.25, creating an immediate opportunity for profit-taking. However, the subsequent large-scale selling pressure led to a sharp correction. By July 17, the token had declined from $3.66 to $3.02, falling below key technical levels. This rapid movement illustrates the direct impact of such large transactions, leading to a notable XRP price drop.
Chris Larsen’s Strategy: Decoding the Offloads
The recent sales are not isolated incidents. The pattern of Chris Larsen offloading XRP has drawn scrutiny from traders and analysts for some time. Since January 2025, Larsen has reportedly offloaded approximately 106 million XRP, valued at roughly $344 million. What’s particularly noteworthy is that these transactions frequently align with XRP price peaks, suggesting a deliberate strategy to capitalize on favorable market conditions.
Blockchain analysts observe that Chris Larsen‘s wallet activity often involves dispersing tokens across multiple addresses, including transfers of 30 million and 10 million XRP. This mirrors prior high-volume sales and indicates a methodical approach. While Ripple has not provided a public explanation for these frequent and large-scale transactions, speculation abounds regarding the potential motives. These could range from standard liquidity management for personal or investment purposes to broader strategic shifts within Ripple’s financial planning.
Ripple XRP Under Pressure: Market Reactions and Concerns
The market’s reaction to these significant offloads has been predictably volatile. Binance’s 4-hour chart for XRP clearly showed the token falling below critical moving averages during the July 2025 sell-offs. Analysts have highlighted the inherent fragility of XRP’s liquidity, noting that shallow order books can amplify the impact of large-scale transactions, making price movements more dramatic.
For retail investors, particularly those with smaller holdings, the sudden price drop translated into significant losses. The distress among smaller holders was palpable, as described by one Twitter user, highlighting the vulnerability of everyday investors in such scenarios. Beyond immediate price action, these events reignite the debate surrounding the centralized control over Ripple XRP. Chris Larsen’s estimated holdings of 2.6 billion XRP, even after recent sales, raise questions about the token’s decentralization. Critics argue this structure undermines true decentralization, while Ripple maintains that such offloads are part of standard financial operations. The timing of the July sales has only exacerbated skepticism, especially given Ripple’s ongoing legal challenges and regulatory uncertainties.
Navigating Broader Crypto Market Concern
The impact of Larsen’s actions extends beyond just XRP, contributing to a broader crypto market concern. Reports indicated that the South Korean exchange Upbit was involved in the July 2025 transactions, though its exact role remains unclear. Meanwhile, Ripple CEO Brad Garlinghouse has separately warned investors about a rise in XRP-related scams, emphasizing the need for extreme caution amidst market volatility.
The struggles of XRP during this period contrasted with Ethereum’s more modest 3% decline, underscoring the heightened sensitivity of crypto markets to large institutional actions and insider movements. The situation is further complicated by an even larger $738 million XRP offloading that occurred during a 20% price surge earlier in July, suggesting a nuanced interplay between strategic asset management and broader market stability. These movements highlight the delicate balance Ripple must maintain between operational flexibility and fostering market confidence.
As XRP attempts to stabilize, the focus remains on leadership-linked wallets for further signals. The recent significant offloads, particularly the alarming $344 million by Chris Larsen, underscore the intense scrutiny Ripple faces. Whether these actions reflect a one-time adjustment or a broader strategic shift in Ripple’s approach to its XRP reserves will significantly influence investor sentiment and regulatory perceptions. The firm’s stewardship of the token continues to draw sharp observation from both its supporters and critics.
Frequently Asked Questions (FAQs)
1. What caused the recent XRP price drop?
The recent XRP price drop was primarily triggered by large-scale offloading of XRP by Ripple co-founder Chris Larsen. He transferred significant amounts, including $26 million and $175 million worth of XRP, to exchanges like Coinbase, leading to increased selling pressure in the market.
2. Who is Chris Larsen and what is his role at Ripple?
Chris Larsen is a co-founder and the executive chairman of Ripple. He is a prominent figure within the company and holds a substantial amount of XRP, Ripple’s native cryptocurrency.
3. How much XRP did Chris Larsen offload recently?
Since January 2025, Chris Larsen has reportedly offloaded approximately 106 million XRP, totaling around $344 million in value. The most recent significant transfers occurred on July 16 and 17, 2025.
4. Why are Chris Larsen’s XRP transactions causing concern?
His transactions are causing concern because they frequently align with XRP price peaks, suggesting a strategy to sell into strength. This pattern, combined with the large volumes, raises questions about market manipulation, centralization of XRP holdings, and the impact on market liquidity and stability, especially for retail investors.
5. Does Ripple’s leadership activity impact XRP’s decentralization?
Critics argue that the substantial holdings and large-scale transactions by Ripple’s leadership, including Chris Larsen, indicate a high degree of centralized control over XRP. This raises concerns about the token’s true decentralization, despite Ripple’s claims that such offloads are standard financial operations.
6. What should XRP holders do in light of these developments?
XRP holders should exercise caution and conduct their own research. Given the market volatility and warnings from Ripple CEO Brad Garlinghouse about scams, it’s crucial to stay informed, avoid impulsive decisions, and be wary of fraudulent schemes. Diversifying portfolios and understanding market dynamics are always recommended.
