Ripple Co-Founder Chris Larsen Sparks Controversy with XRP Transfers
In a dramatic turn of events, Chris Larsen, co-founder of Ripple, recently transferred a staggering $175 million worth of XRP tokens. Of this amount, $140 million was directed to various cryptocurrency exchanges, raising concerns over potential selling pressure and the timing of these transactions.
Just last week, Larsen initiated multiple transfers, starting with $6.5 million (approximately AU$9.87 million) to Coinbase, followed by an additional $40 million (around AU$60.75 million) to undisclosed wallets. Subsequently, prominent crypto investigator ZachXBT revealed that Larsen had moved a total of $175 million in XRP, with the majority – $140 million – earmarked for exchanges.
The moves have garnered significant attention on social media, with many questioning whether this flow of tokens signals an impending sell-off, especially since XRP reached a new all-time high of $3.65 (AU$5.54) on 18 July. Despite this impressive price performance, Ripple’s market cap soared to $182 billion (AU$276.31 billion), solidifying its position as the third-largest cryptocurrency.
ZachXBT noted that Larsen’s wallets still hold over 2.8 billion XRP, translating to a value surpassing $8.5 billion (approximately AU$12.9 billion). However, Larsen has not publicly commented on these substantial transactions.
Decline in XRP Ledger Users Amidst Outperformance
As Larsen’s XRP transfers have come to light, the XRP Ledger (XRPL) has faced a significant decline in active user numbers. Reports indicate that daily active accounts have halved since the beginning of 2025, plunging from 39,500 to a mere 19,500, despite XRP’s notable price gains during the same period.
Interestingly, XRP has outshone its rival Ethereum in terms of performance. In the past year, XRP has surged by 415%, compared to Ethereum’s modest 14% increase. Furthermore, XRP’s recent performance shows a 42% rise in just one month, while Ethereum has only grown by 49% over the same timeframe. Ethereum’s previous all-time high of $4,891 (AU$7,440) remains intact as it has yet to achieve a new peak.
Market demand for Ethereum has been strong, particularly with the recent record inflows into US spot Ethereum exchange-traded funds (ETFs), indicating investor interest. However, XRP currently lacks a comparable range of product offerings, though several asset managers are awaiting approval for altcoin ETFs from the US Securities and Exchange Commission (SEC). Following recent developments and shifts in leadership within the SEC, many anticipate that several altcoin ETF applications will gain approval in 2025.
In conclusion, while Larsen’s massive XRP transfers raise eyebrows and spark concerns within the cryptocurrency community, XRP continues to perform remarkably well against Ethereum, even as user engagement on its ledger wanes. Market participants will be keenly watching for developments on ETF approvals and any potential impact on altcoin valuations and investor interest in the months to come.
