Ripple seems determined to secure a significant foothold in the stablecoin space, though its bid to acquire Circle, the issuer of the second-largest stablecoin, was reportedly rejected. This move underscores Ripple’s ambition in the increasingly competitive stablecoin market.
Despite an impressive launch, Ripple’s own stablecoin, RLUSD, has stalled, with its market cap currently remaining under $320 million, as reported by CoinMarketCap and CoinGecko. This stagnation is notable given the positive momentum the stablecoin initially gained.
Circle Refuses
According to a report, Ripple’s takeover offer, valued between $4 billion and $5 billion, was dismissed by Circle as insufficient. Sources familiar with the negotiations indicated that Ripple has no intentions of increasing its bid for the company behind the widely-used USDC stablecoin.
In contrast, earlier this year, Ripple made headlines with its acquisition of Hidden Road, a prime brokerage company, for $1.2 billion. This deal was notable for its size within the industry and is anticipated to significantly influence XRP and the XRPLedger network, as confirmed by CEO Brad Garlinghouse, particularly for post-trade settlements.
Galirnghouse announced in mid-March that the ongoing legal battles with the SEC are coming to a close, as both parties opted not to pursue further appeals. This development may have positioned Ripple to pursue major strategic initiatives, despite the failure to secure Circle as an acquisition.
RLUSD Struggles?
Having been thwarted in its bid to acquire a major competitor, Ripple has developed its own stablecoin, RLUSD, which debuted successfully late last year. Following a favorable regulatory approval in the US, RLUSD experienced significant early growth, with its market cap rising from $200 million to $300 million in just a few days, marking a 50% increase in early April.
However, RLUSD’s trajectory has since plateaued, with only a modest increase in market capitalization of under $20 million in the subsequent weeks. On a positive note, trading volumes on centralized exchanges have witnessed a 30% surge over the last day, topping $50 million according to CoinMarketCap.
This evolving narrative surrounding Ripple and its ventures into the stablecoin market reflects broader trends within the cryptocurrency industry. As Ripple navigates both opportunities and challenges, it remains to be seen how its strategic decisions will shape its future and that of the stablecoin market.
The original post can be found at CryptoPotato.
