Ripple fails to acquire Circle for $5 billion, what does this mean for XRP’s future?

Updated

May 2, 2025

Gambar Ripple fails to acquire Circle for $5 billion, what does this mean for XRP’s future?

Jakarta, Pintu News – Ripple , a leading company in the blockchain world, recently made a $5 billion acquisition offer for Circle, a leading stablecoin issuer, which was rejected as too low. According to a Bloomberg report, Circle preferred to focus on its upcoming Initial Public Offering (IPO) rather than accept the offer. This decision raises big questions about strategy and competition in the cryptocurrency market.

Bid Rejection and Circle’s IPO Focus

🚨 Circle Rejected Ripple Takeover Bid of $4-5B https://t.co/6VPRVN5hZx pic.twitter.com/mP3Ff6EEKU
— matthew sigel, recovering CFA (@matthew_sigel) April 30, 2025

Circle, known as the issuer of the stablecoin US Dollar Coin , has shown significant growth with its market capitalization increasing from $43 billion to $62 billion in the last four months. With the rejection of the offer from Ripple, Circle seems more interested in strengthening its position in the market through an upcoming IPO.

Circle representatives called the offer from Ripple a “market rumor” and reiterated the company’s focus on an IPO that will not only increase their capitalization but also strengthen investor confidence. Circle has complied with strict regulations such as MiCA (Market in Crypto Assets) in the European Union and various regulatory requirements in the US that are yet to become law. This compliance has positioned USDC as one of the most regulated stablecoins, attracting investor and user interest and trust.

Also Read: Ripple (XRP) Moves $1.1 Billion, What Happened?

Circle’s Stablecoin Ambitions and Challenges for Ripple

(4/🧵) USDC currently leads in regulatory adoption:
•80% of U.S.-based crypto exchanges offer USDC pairs
•Integrated with Stripe, Robinhood, Visa
•Backed by fully reserved U.S. treasuries
•Deemed a “regulated stablecoin” in U.S. policy discussions

Buying Circle means… pic.twitter.com/oBkjCDlkAT
— Stellar Rippler🚀 (@StellarNews007) April 30, 2025

With USDC now the second largest stablecoin after Tether , Circle is not only expanding its scope in the cryptocurrency market but also directly challenging Ripple’s business model.

Circle’s recent announcement of cross-border payments is considered a strategic move that challenges Ripple’s dominance in this area. It shows that Circle is not only strengthening its position in the market but also actively seeking innovation and expansion that can reduce dependence on other platforms such as Ripple (XRP).

Market Reaction and Future Outlook for XRP

Here we go again @Ripple is further consolidating the digital asset landscape.

Now they’re 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
Demand will follow. pic.twitter.com/4JFLj3HVdA
— Versan | Black Swan Capitalist (@VersanAljarrah) May 1, 2025

Despite the acquisition offer being rejected, Ripple (XRP) continues to perform strongly in the market with $1.25 billion in capital inflows. The digital currency has seen a 40% rebound from its April low, with prices currently in a short-term uptrend.

Ripple trying to buy Circle is the ultimate example of “fake it till you make it” on steroids.

Imagine your entire business model for a decade has revolved around hyping up your community with empty promises and flashy news – all just to pump the $XRP token to absurd,… pic.twitter.com/XlZMhbnTUv
— Simon (@sjdedic) April 30, 2025

If this trend continues, XRP could reach the $2.4 target. However, in order to reach that target, XRP needs to maintain support at the $2.1 level to avoid further declines that could take the price down to $2 or lower.

Conclusion

Circle’s rejection of Ripple’s acquisition offer may signal a new era of competition and innovation in the stablecoin industry. With its upcoming IPO, Circle has the potential to become bigger and more influential in the market. On the other hand, Ripple may need to re-evaluate its strategy to strengthen its position in this increasingly competitive market. Either way, the dynamic between these two giants will be very interesting to follow.

Also Read: Worldcoin: Innovating Digital Identity Verification Through Iris Scanning

That’s the latest information about crypto. Follow us on Google News for the latest crypto and blockchain technology updates. Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now.

Experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro. Pintu Pro Futures is also available, where you can buy bitcoin leverage, trade btc futures, eth futures and sol futures easily from your desktop!

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.