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XRP news today: Ripple's $5B Bid for Circle Rejected Amid Market Growth

Coin WorldThursday, May 1, 2025 11:17 am ET

1min read

Ripple's recent attempt to acquire Circle for up to $5 billion has been met with resistance, highlighting the competitive and evolving nature of the cryptocurrency market. The acquisition bid, which was reportedly valued between $4 billion and $5 billion, was declined by Circle on the grounds that the offer was insufficient. Neither Ripple nor Circle has publicly confirmed the details of the bid, but a representative from Circle dismissed it as a market rumor, emphasizing the company's focus on its upcoming Initial Public Offering (IPO).

Circle, initially a stablecoin issuer, has seen significant growth with its usdc stablecoin, which has 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 44% growth in just four months. In contrast, USDT experienced a mere 7.25% increase during the same period, growing from $138 billion to $148 billion. This robust performance of USDC is attributed to its regulatory compliance, adhering to stringent E.U. MiCA regulations and meeting critical requirements of U.S. stablecoin bills yet to be enacted.

Circle's recent introduction of a cross-border payment initiative has been viewed as a direct challenge to Ripple’s business model, raising questions about Ripple's intentions. Some market analysts suggest that Ripple's bid could be a consolidation play, aiming to secure USDC's strength as a regulated stablecoin along with its extensive partnerships and integrations. Crypto investor Varsan Aljarrah expressed similar thoughts, stating that Ripple is locking in liquidity corridors and securing institutional rails, all leading 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.

Despite the pushback, XRP has seen significant capital inflows, partly accounting 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. However, 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.

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.

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