Key Insights:
- A wallet linked to Ripple co-founder Chris Larsen recently sent 50 million XRP to exchanges.
- Analysts are warning that over 2.5 billion XRP, worth nearly $9 billion, could still be sold.
- XRP has fallen 13% since its recent peak, after failing to recover after the sell-off began.
A recent 50 million XRP transaction from a wallet linked to Ripple co-founder Chris Larsen has been a major source of concern across the crypto space. Analysts are now warning that this move might only be the beginning.
If the full XRP balance in Larsen’s wallet (worth over 2.5 billion tokens) is offloaded, it could unleash nearly $9 billion worth of selling pressure on the market.
Just the Beginning? Analysts Think So
On-chain analytics contributor J.A. Maartunn from CryptoQuant recently pointed out the scale of what’s still at stake. He called the recent sale a “warm-up” in a recent X post. He also noted that the wallet tied to Larsen still holds about 2.58 billion XRP.
At current prices, that stash is worth around $8.83 billion. “If $200 million was just the warm-up… what’s next?” Maartunn asked.
🚨 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
This isn’t the first time large XRP transfers have triggered sell-off concerns. However, this instance comes at a particularly sensitive time. XRP is currently leading the altcoin market’s comeback after Bitcoin’s recent consolidation, and that recovery now appears to be at risk.
Divided Reactions from the XRP Community
Reactions to the sale have been mixed. Some community members see it as a routine profit-taking move, which is reasonable given the recent price spike. Others believe it to be a betrayal, especially since the sale occurred close to XRP’s local peak.
Critics are arguing that selling during a rally might be deliberate timing, aimed at taking advantage of regular investors holding the bag. This has led to some friction among XRP investors over the ethics of large token holders when it comes to taking profits.
Chris Larsen, Ripple co-founder, sold nearly $200M $XRP in 10 days.
Still buying?
You might be his exit liquidity.He’s unloading heavy be cautious! ⚠️ pic.twitter.com/mCiBl8jRrZ
— ManLy (@ManLyNFT) July 25, 2025
Maartunn urged XRP holders to remain on alert. He warned, “Don’t get dumped on. Don’t be the exit liquidity. Protect yourself.
By “exit liquidity,” he refers to a scenario where unsuspecting investors buy into a project at high prices, only to see the value crash after insiders or large holders sell their positions. This scenario is all too common in crypto, especially with tokens that lack clear transparency or lock-up mechanisms.
Bitcoin Feels the Heat Too
The XRP sell-off didn’t happen in isolation. Around the same time, Bitcoin itself faced unexpected pressure after a dormant wallet containing 80,000 BTC (worth nearly $9 billion) suddenly moved its funds.
These coins, which were untouched for 14 years, were sold through Galaxy Digital, and the transaction briefly caused BTC to plunge to around $114,500 before rebounding. Even though the market recovers fairly quickly, the back-to-back sell-offs of whales often leave traders uneasy.
And if the trend continues, the fear, uncertainty, and doubt (FUD) across the market is likely to soar.
Is This the End of XRP’s Bullish Run?
Just weeks ago, XRP was hailed as one of the top-performing altcoins during the latest market rally. It surged past $3.60 on July 17 and broke major resistance levels in its run toward new all-time highs.
But now, XRP/USD is down 13% from its peak, and Larsen’s wallet is under scrutiny. If more large tranches of XRP are sent to exchanges, the price could face fresh selling pressure and wipe out recent gains.
While nobody knows whether Larsen plans to continue offloading his holdings, the possibility is enough to make investors nervous.
