Ripple co-founder Chris Larsen liquidated approximately $200 million worth of XRP tokens over a ten-day period, triggering concerns about liquidity pressures and investor sentiment amid ongoing market volatility.
The significant sell-off, executed against Larsen’s estimated 2.8 billion XRP holdings, coincided with notable price instability for the cryptocurrency. This included XRP briefly falling below the critical $3 support level, raising questions about the broader market impact of such large-scale divestments.
CryptoQuant analyst J.A. Maartun cautioned that Larsen’s transactions could provide ‘exit liquidity’ benefiting institutional sellers at the potential expense of retail investors, who may face heightened vulnerability to abrupt price shifts. Larsen’s $10.8 billion net worth and substantial token reserves underscore his considerable influence over XRP’s market dynamics when executing major trades.
Despite these transactions, Ripple continues advancing strategic initiatives positioning XRP as a bridge currency for cross-border transactions. The firm’s ongoing developments in payment solutions remain a focal point for analysts assessing the token’s long-term trajectory.