- Dormant XRP wallets linked to Ripple’s co-founder reactivated, moving $109M to exchanges.
- Unclear motives behind the transfers spark speculation amid growing governmental crypto adoption.
Despite XRP recording 511,000 new wallet additions and 2,300 whale transactions during a market rally, CNF reports that long-dormant wallets have suddenly become active. After years of inactivity, these wallets transferred over $109 million worth of XRP to exchanges in January 2025.
Despite these movements, approximately 2.7 billion XRP, valued at $7.18 billion, remains in these wallets. Blockchain investigator ZachXBT recently highlighted significant activity within these dormant XRP wallets linked to Ripple co-founder Chris Larsen.
🚨 ZachXBT warns: XRP addresses activated by Chris Larsen (Ripple co-founder) still hold over 2.7B XRP ($7.18B). These addresses tied to him transferred more than $109M worth of XRP to exchanges in January 2025.
Chris Larsen had previously lost 213M $XRP worth $112M in early… pic.twitter.com/ksLYbRVTfR
— Crypto India (@CryptooIndia) March 3, 2025
Dormant Wallets Spring to Life
The sudden activation of these long-dormant wallets has raised serious questions within the crypto community. Some speculate that Larsen may be liquidating portions of his holdings, while others wonder if he may have lost access to these funds.
Notably, in early 2024, Larsen reportedly lost access to 213 million XRP (valued at $112 million) due to a hack, adding to the speculation surrounding these wallet movements.
Potential Market Implications—Ripple Co-Founder?
The transfer of such large amounts of XRP could have significant market implications. Large movements to exchanges often precede sell-offs, which can increase supply and drive down prices. However, XRP’s price has remained relatively stable, suggesting that the market has absorbed these transactions without significant impact.
As of now, there has been no official statement from Chris Larsen or Ripple regarding these recent transfers. The lack of transparency has fueled speculation, with theories ranging from routine portfolio management to security concerns.
Broader Context: U.S. Strategic Crypto Reserve
In a related CNF report, President Trump announced the creation of a U.S. Strategic Crypto Reserve on March 3, 2025, which includes XRP among other cryptocurrencies. Following this announcement, XRP’s price surged from $2.23 to $2.99, before stabilizing.
The establishment of this reserve aims to bolster the legitimacy of the crypto industry and provide governmental support.
Despite this, the reactivation of Larsen’s dormant XRP wallets introduces a new variable into the market. The exact reasons behind these large transfers remain unclear, and stakeholders are closely monitoring the situation for potential market impacts.
Current Market Performance
Coupled with recent governmental endorsements of cryptocurrencies, these developments highlight the evolving nature of digital assets in the global financial system.
According to CoinMarketCap data, Ripple (XRP) is currently trading at $2.34, reflecting a 18.57% decline in the past day and a 1.88% decrease in the past week. See XRP price chart below.
