The cryptocurrency world is buzzing once again over revelations surrounding Ripple co-founder Chris Larsen and a massive stash of XRP that has remained untouched for years. Blockchain investigator ZachXBT recently uncovered dormant wallets tied to Larsen, holding approximately 2.7 billion XRP—valued at around $7.18 billion—with some addresses inactive for as long as six to seven years.
This discovery has reignited speculation about the future of these funds, their potential market impact, and whether they could be moved again in the near term. With growing interest in digital assets from institutional and governmental bodies alike, the spotlight on major XRP holders like Larsen has never been brighter.
Discovery of Dormant XRP Holdings
ZachXBT, a well-known blockchain sleuth, revealed through his Telegram channel that several wallet addresses created by Chris Larsen still hold vast amounts of XRP despite showing little to no activity over the past several years. The sheer size of these holdings—worth billions—has raised questions about their current status and control.
While the wallets appear to be linked to Larsen based on early transaction patterns and public blockchain data, ZachXBT noted that it's unclear whether Larsen currently controls all of them. Some may have been transferred or lost due to forgotten keys, a common issue in the early days of crypto when security practices were less mature.
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Recent Activity Sparks Market Reaction
Despite years of dormancy, signs of movement emerged in January 2025, when over $109 million worth of XRP was transferred to major exchanges including Coinbase, Bitstamp, and Bybit. Such transfers are often interpreted as potential precursors to selling, especially when coming from high-profile wallets.
This activity coincided with heightened market sentiment following former President Donald Trump’s announcement of a proposed U.S. strategic crypto reserve—including XRP among its targeted assets—which added fuel to an already bullish environment.
The combination of institutional interest and whale-level transactions triggered a strong market reaction. XRP’s price surged 18%, jumping from a low of $2.23** to a peak of **$2.93 before settling at $2.60 by market close. Traders and analysts closely watched order books and exchange inflows, looking for clues about further sell-side pressure.
Historical Context: Past Transactions Under Scrutiny
This isn’t the first time Chris Larsen’s XRP movements have drawn attention. In September 2020, he transferred roughly 500 million XRP—then valued at $115 million—to an unknown address. At the time, the move sparked rumors of a secret sale or private deal.
Larsen later clarified that the transfer was part of a security-driven initiative, sending the funds to NYDIG, a trusted institutional custody provider. While this explanation eased concerns for many, skeptics questioned whether such arrangements could mask gradual sell-offs under the radar.
ZachXBT’s latest findings echo those earlier debates, underscoring the ongoing tension between transparency and privacy in public blockchain ecosystems.
What This Means for XRP Investors
The existence of billions in dormant XRP linked to a Ripple founder introduces both opportunity and risk for investors:
- Bullish Signal: Large dormant holdings suggest long-term confidence in XRP’s value.
- Bearish Risk: Any future large-scale movement could increase sell pressure and cause short-term volatility.
- Market Sensitivity: XRP remains highly responsive to whale activity and macro-level crypto policy announcements.
Moreover, with Ripple’s ongoing legal battles with the SEC nearing resolution and increasing global adoption of its payment solutions, the project’s fundamentals continue to strengthen—potentially supporting higher valuations if regulatory clarity improves.
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FAQ: Understanding the Impact of Dormant XRP Wallets
Q: Are the inactive wallets definitely controlled by Chris Larsen?
A: While blockchain analysis links the wallets to Larsen based on early transaction history, there is no definitive proof he still controls them. Some may have been lost or reassigned.
Q: Could this lead to a massive sell-off of XRP?
A: Not necessarily. Transfers to exchanges don’t always mean immediate sales—they could be for custody, staking, or institutional partnerships. However, sustained outflows would warrant caution.
Q: How did the market react to the news?
A: XRP surged 18%, climbing from $2.23 to $2.93 intraday before closing at $2.60—showing strong positive sentiment tied to whale activity and broader market momentum.
Q: Is XRP part of any government-backed crypto initiatives?
A: As of 2025, discussions are underway regarding a potential U.S. strategic crypto reserve that includes XRP among other major assets, though formal inclusion has not yet been confirmed.
Q: Why are old wallets suddenly active after years?
A: Improved security infrastructure, rising asset values, and institutional custody options make it more feasible now to access or manage old holdings safely.
Core Keywords Integration
Throughout this analysis, key themes emerge that align with top search queries in the crypto space:
- Chris Larsen XRP holdings
- dormant XRP wallets
- XRP price surge 2025
- ZachXBT blockchain investigation
- XRP whale activity
- Ripple co-founder crypto assets
- XRP exchange inflows
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These terms naturally reflect user intent—from tracking influential figures in the ecosystem to understanding price drivers and on-chain behavior.
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Final Thoughts
The re-emergence of multi-billion-dollar XRP holdings tied to Chris Larsen serves as a reminder of how concentrated ownership can influence market dynamics. While no evidence suggests malicious intent or imminent dumping, the mere possibility keeps traders alert.
As blockchain transparency tools become more advanced, investigations like ZachXBT’s will continue shaping market narratives—offering insights into hidden corners of the crypto economy. For investors, staying informed about whale movements, regulatory developments, and macro trends remains essential for navigating volatile yet promising markets like XRP.
With strong fundamentals, renewed visibility, and growing institutional interest, XRP’s journey is far from over—and watchers will surely keep an eye on those silent wallets in the months ahead.