Ripple’s recent attempt to acquire Circle for up to $5 billion faces significant hurdles, highlighting the dynamic nature of the cryptocurrency market.
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Ripple reportedly attempted to acquire rival Circle for $4B-$5B.
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XRP price was above the short-term support of $2.1 — Is $2.4 the next target?
Ripple’s [XRP] $5 billion bid to acquire rival and stablecoin issuer Circle was reportedly rejected. According to a Bloomberg report, Circle declined the offer on grounds that it was ‘too low.’
Mathew Sigel, VanEck’s head of digital asset research, recently estimated Circle’s equity valuation to be around $4 billion to $6 billion. Neither party had publicly confirmed the reported bid at the time of writing.
However, the Bloomberg report noted that a Circle representative classified the ‘offer’ as a ‘market rumor’ and reiterated the firm’s focus on its upcoming Initial Public Offering (IPO).
Circle’s Bold Stablecoin Ambition
Circle started as a stablecoin issuer and its USDC has risen to become the second-largest digital dollar by market size after Tether’s USDT.
From January to May 2025, USDC’s market cap surged from $43 billion to $62 billion — representing a dramatic 44% growth in just four months.
In contrast, USDT experienced a mere 7.25% increase during the same timeframe, growing from $138 billion to $148 billion. Market analysts have linked USDC’s robust performance to its regulatory compliance.
The stablecoin adheres to stringent E.U. MiCA (Market in Crypto Assets) regulations while meeting critical requirements of U.S. stablecoin bills yet to be enacted.
Furthermore, Circle recently introduced a cross-border payment initiative, viewed by many in the market as a direct challenge to Ripple’s business model.
This situation initiates an important question: Does Ripple aim to eliminate competition, or is it pursuing consolidation in this rapidly evolving market?
One market analyst suggested it could be a pure consolidation play, citing USDC’s strength as a ‘regulated stablecoin’ along with its extensive partnerships and integrations.
Crypto investor Varsan Aljarrah expressed similar thoughts, stating:
“Now they’re (Ripple) bidding to acquire Circle. Bit by bit, they’re locking in all the liquidity corridors, acquiring on/off ramps, and securing institutional rails. All roads lead to #XRP.”
However, Simon Dedic, CEO of Moonrock Capital, criticized the maneuver, labeling Ripple as ‘scammy’ and suggesting that it should not take over a ‘legitimate’ and profitable firm like Circle.
“Ripple trying to buy Circle is the ultimate example of ‘fake it till you make it’ on steroids,” he remarked.
Despite the pushback, XRP garnered $1.25 billion in capital inflows, as reported by Glassnode. This influx partly accounts for its remarkable 40% rebound from the April lows of $1.6.
The altcoin has been consistently rising within a short-term ascending channel, with the $2.4 target becoming attainable should the trend persist.
Nonetheless, XRP bulls must defend the pivotal $2.1 support level to reach this target. A sustained dip below $2.1 could force the price down to $2 or below.
Source: XRP/USDT, TradingView
Conclusion
In summary, Ripple’s failed bid for Circle underscores the complex dynamics within the cryptocurrency landscape. With both companies carving out their unique market spaces, the question of future consolidations remains open. As XRP continues its pursuit of growth, maintaining essential support levels will be crucial for its upward trajectory.
