Ripple’s $5B Circle Bid Crashes—What Now for XRP?

Ripple’s ambitious $5 billion play for Circle just imploded—leaving XRP holders staring at an uncertain future. Was this a strategic retreat or a sign of deeper troubles?

Behind the deal’s collapse: Regulatory landmines or cold feet? Sources whisper both sides balked at the fine print—Circle’s USDC dominance vs. Ripple’s SEC baggage. Classic crypto ‘synergies.’

XRP’s price wobbles as traders weigh the fallout. Bulls argue it frees Ripple to focus on payments; bears see a missed chance to absorb Circle’s institutional clout. Meanwhile, Bitcoin maximalists smugly recycle their ‘told-you-so’ memes.

Bottom line: In crypto’s high-stakes M&A circus, even failed deals move markets. XRP’s next act hinges on whether Ripple pivots—or keeps writing checks its tech can’t cash.

Circle’s bold stablecoin ambition

Circle began as a stablecoin issuer and now its USDC ranks as the second-largest digital dollar by market size after Tether’s USDT.

In 2025, USDC’s market grew from $43 billion to $62 billion — a whopping 44% growth in four months. 

USDT only surged 7.25% from $138B to $148B over the same period. Market analysts have linked USDC’s continued growth to regulatory compliance. 

It complies with strict E.U. MiCA (Market in Crypto Assets) regulation and checks key requirements by U.S. stablecoin bills yet to be adopted as law.  

Besides, Circle recently announced a cross-border payment, which most market watchers viewed as a direct challenge to Ripple’s business model.

This begs the question: Is Ripple out to eliminate competition or drive consolidation in this promising market? 

One market watcher claimed it could be a pure consolidation move, citing USDC’s moat as a ‘regulated stablecoin’ and massive partnerships and integration.

Crypto investor Varsan Aljarrah echoed similar sentiments. 

“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, slammed the move, calling Ripple ‘scammy’ and saying it shouldn’t acquire a ‘legitimate’ and profitable Circle. 

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

That said, XRP raked in $1.25 billion in capital inflows, according to Glassnode. This partly explained the 40% rebound from the April lows of $1.6.

The altcoin has steadily grown within the short-term ascending channel, and the $2.4 target could be hit if the trend continues. 

However, XRP bulls must defend the $2.1 support to reach the target. Otherwise, a sustained dip below $2.1 could drag it to $2 or below. 

Source: XRP/USDT, TradingView