The Reasons Behind Circle's Rejection of Ripple's $5 Billion Acquisition Proposal

Ripple, despite having its own stablecoin, intended to make a significant move in the stablecoin space by acquiring the second-largest issuer, Circle. However, the offer, which was said to range between $4 billion and $5 billion, was reportedly declined as Circle considered it too low. Ripple, according to sources, has no plans to increase the offer.

Earlier this year, Ripple completed the acquisition of Hidden Road, a prime broker, for $1.2 billion and this was seen as a significant move in the industry. Ripple’s own stablecoin, RLUSD, launched last year, saw its market cap increase significantly in early April but has since slowed down, with less than $20 million gained in the weeks following.

Despite this, trading volumes on CEX have increased by 30% to over $50 million.