XRP Faces Downturn as Market Volatility Highlights Divergent Crypto Trends

The cryptocurrency market experienced significant volatility on May 2, 2025, with XRP facing downward pressure while lesser-known tokens like Alpaca saw explosive gains. This divergence occurred alongside major regulatory developments, including El Salvador’s reaffirmed Bitcoin commitment and progress on U.S. crypto legislation. PayPal’s undisclosed crypto activities added further intrigue to the market dynamics.

XRP Dips as Alpaca Token Surges 360% Amid Crypto Market Volatility

Cryptocurrency markets witnessed extreme divergence as XRP faced downward pressure while an obscure ’Alpaca’ token skyrocketed 360% in a single trading session. The moves came alongside significant regulatory developments, with El Salvador reaffirming its Bitcoin commitment and U.S. lawmakers advancing long-awaited crypto legislation.

PayPal’s undisclosed crypto-related activity added to the day’s intrigue, though details remain scarce. market participants appear torn between chasing explosive altcoin rallies and anticipating broader institutional adoption through regulatory clarity.

XRP Trading Volume Surges 134% Amid $2.17B Short-Term Capital Influx

XRP trading activity has skyrocketed by 134.9% as $2.17 billion in short-term capital entered the market, according to Glassnode data. The surge reflects a dramatic shift from $0.92 billion in inflows on April 20 to the current figure, signaling renewed speculative interest.

Whale activity and price volatility appear to be driving the trend. The Realized Cap by Age chart reveals a pronounced increase in "hot money"—crypto assets held for less than a week—suggesting traders are capitalizing on near-term price movements rather than long-term positions.

Ripple’s $5B Bid for Circle Rejected Amid IPO Plans

Ripple, the company behind XRP, made an unsolicited offer to acquire stablecoin issuer Circle for between $4 billion and $5 billion. The proposal was swiftly rejected as undervaluing the company, according to sources familiar with the matter.

The acquisition attempt surfaced as Circle prepares for an initial public offering that could value the firm between $4 billion and $6 billion. Market observers note the timing suggests Ripple sought to preempt Circle’s public market debut.

Circle executives remain committed to their IPO roadmap, with representatives stating unequivocally that the company will proceed with its listing plans. The rejection comes despite growing consolidation trends in the crypto sector.

XRP Records $1.25B Speculative Inflow Amid Persistent Bearish Sentiment

Ripple’s XRP witnessed a 134% surge in speculative capital inflows over the past week, with Hot Capital jumping from $0.92 billion to $2.17 billion. The $1.25 billion increase suggests growing short-term trader interest, potentially anticipating a price rebound.

Despite the capital influx, market sentiment remains firmly bearish. Sellers maintain control, with the current Hot Capital metric still 72% below its December peak of $7.66 billion. The divergence between capital flows and price action highlights the ongoing tension between speculative interest and broader market trends.

XRP Price Suppression Allegedly Driven by Off-Exchange ’Dark Pool’ Trading

Crypto analyst Jake Claver of Digital Ascension Group claims institutional demand for XRP is being funneled through private liquidity venues, artificially suppressing its spot price. Over 250,000 viewers engaged with his X thread detailing how dark pools absorb large orders that would otherwise impact public markets.

"Dark pools are private execution venues where whales can move $500 million positions without moving the order book," Claver asserted. The mechanism allegedly prevents natural price discovery despite growing institutional interest in the embattled asset.

Circle Rejects Ripple’s $5B Acquisition Bid Amid IPO Plans

Circle, the issuer of USDC, has reportedly declined a $4 billion to $5 billion acquisition offer from Ripple. Sources familiar with the matter indicate the bid was deemed insufficient as Circle advances toward a public listing. The stablecoin firm confidentially filed for an IPO earlier this month and remains in a regulatory quiet period.

Ripple’s overture underscores its ambition to expand in the stablecoin sector, but Circle’s rebuff signals confidence in its standalone trajectory. Market observers now speculate whether Ripple will return with a higher bid or shift focus to alternative partnerships.