- Ripple’s RLUSD stablecoin holds $320M market cap versus USDC’s $60B, driving urgency behind acquisition bid.
- XRP faced price pressure as Ripple’s expansion plans clash with Circle’s IPO-focused growth strategy.
Ripple proposed acquiring Circle, the issuer of the U.S. dollar-backed stablecoin USDC, for $4 billion to $5 billion, according to a Bloomberg report published Wednesday. Circle rejected the offer, stating the valuation fell short of its growth plans and upcoming public listing.
Ripple recently entered the stablecoin market with RLUSD, which holds a $320 million market value. Acquiring Circle would have positioned Ripple closer to USDC’s $60 billion market presence, accelerating its reach in a sector dominated by Tether’s USDT. Circle’s rejection highlights diverging strategies: Ripple favors growth through purchases, while Circle prioritizes public markets.
The bid’s disclosure coincided with regulatory delays affecting alternative cryptocurrencies, amplifying downward pressure on XRP’s price. Investors questioned Ripple’s ability to compete in stablecoins without major acquisitions. Earlier this year, Ripple acquired prime brokerage firm Hidden Road for $1.25 billion, signaling its broader expansion goals.
Circle, valued at $9 billion during a 2022 attempt to go public via a SPAC merger, has not ruled out future deals but seeks terms reflecting its IPO trajectory. The company’s filing suggests confidence in standalone growth as stablecoins gain traction among institutions. Meanwhile, Ripple CEO Brad Garlinghouse has openly discussed acquisition plans but avoided commenting on the Circle bid.
Crypto firms are split between mergers and public listings
Companies like BitGo and Gemini explore IPOs, while Ripple opts for targeted buys. For now, Circle’s rejection leaves Ripple reliant on organic growth for RLUSD adoption—a slower path in a market where scale often dictates influence.
Regulatory scrutiny and institutional demand for stablecoins add complexity. As policymakers weigh oversight frameworks, firms like Circle may benefit from clearer rules, potentially boosting valuations.
XRP is currently trading at $2.21, reflecting a +0.84% daily gain. Despite a recent correction from a local high of $2.359, XRP remains in a long-term bullish trend, boasting a +331.25% increase over 6 months and +341.67% over the past year. The asset is now consolidating below $2.26, under the 23.6% Fibonacci retracement level, after testing support near $2.22.
Technical indicators remain neutral, signaling market indecision as bulls defend a key support range.
A major highlight in the technical space is the 5,438% imbalance in liquidations, with $7.64 million in longs being wiped—indicative of speculative volatility. However, price action continues to favor an eventual breakout should buyers reclaim the $2.30–$2.35 zone. A daily close above that level could project XRP toward $2.77 and $3.00, aligning with past highs.
On the institutional side, bullish sentiment persists. A recent TradingView user cited a conversation with a UBS Wealth Management executive, confirming XRP is being actively discussed among high-net-worth clients.
