Ripple's Failed Circle Bid: XRP Implications
Ripple’s attempted acquisition of Circle, reportedly valued between $4 billion and $5 billion, has been rejected. Bloomberg reports that Circle considered the offer too low, citing an internal equity valuation significantly higher. While neither party has publicly confirmed the bid, the news has sparked considerable discussion about Ripple’s strategic goals and the potential impact on XRP.
Circle's Growing Influence
Circle, initially known as a stablecoin issuer, has seen its USDC stablecoin become the second-largest digital dollar, trailing only Tether’s USDT. USDC’s market capitalization surged from $43 billion to $62 billion between 2025 and 2025—a remarkable 44% growth in just four months. This growth, analysts suggest, is driven by its strong regulatory compliance, aligning with the EU’s MiCA regulation and key requirements of proposed U.S. stablecoin bills.
Circle’s recent foray into cross-border payments presents a direct challenge to Ripple’s core business model. This raises questions about Ripple’s intentions: is it aiming to eliminate competition or consolidate the market? Some analysts see the bid as a consolidation play, highlighting USDC’s regulatory advantages and extensive partnerships. Others are more critical, viewing the move as a risky tactic.
XRP Price Action and Market Sentiment
Despite the failed acquisition, XRP saw $1.25 billion in capital inflows, according to Glassnode data, contributing to a 40% rebound from its April lows. The altcoin’s price has been moving within a short-term ascending channel, potentially targeting $2.4. However, maintaining support at $2.1 is crucial; failure to do so could trigger a price drop.
Source: XRP/USDT, TradingView
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