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Newbie must-read: Analysis of the big dump in Circle's stock price behind the integration of XRP Ledger with USDC EVM sidechains
6/20/2025, 11:28:14 PM
Background Review
FXStreet reported on June 12, 2025, that the XRP Ledger will launch a USDC sidechain compatible with the Ethereum Virtual Machine in the second quarter, facilitating cross-chain applications of stablecoins. This move is seen as a complement to the Ethereum mainnet, but it has also caused significant fluctuations in the stock price of USDC issuer Circle.
Technical value and potential impact
- Cross-chain interoperability: EVM sidechains can achieve direct interaction with Ethereum dApps, lowering the threshold for developers.
- Cost advantage: The XRP Ledger charges a transaction fee of less than 0.00001 XRP, which is a clear advantage.
- Ecological diversification: Sidechains will attract the landing of multiple application scenarios such as DeFi, NFT, and gaming.
Interpretation of Circle's Stock Price Fluctuation
- Competition concerns: The distribution of USDC across multiple chains may erode Ethereum's market share and undermine investor confidence.
- Profit model risk: lower on-chain fees or compressed revenue sources for Circle.
- Emotion-driven sell-off: institutions and retail investors take the opportunity to reduce their positions, creating selling pressure.
Currently, the latest closing price of Circle is about 18.50 USD, with a fall of nearly 9.5%; the market price of XRP is around 0.60 USD, fluctuating 1.8% within 24 hours.
Risks and opportunities coexist
- Risks: Market diversion; technology implementation not meeting expectations; changes in the macro regulatory environment.
- Opportunities: Innovation in cross-chain applications; Increased ecological cooperation; Overall expansion of the stablecoin market.
Newbie investment advice
- Buy in batches at dips: For those optimistic about the future of multi-chain, gradually buy near important support levels.
- Set goals: clearly define short-term and long-term return expectations, and strictly implement profit-taking strategies.
- Keep learning: Pay attention to official announcements and community dynamics to grasp the latest developments of the project.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
Newbie must-read: Analysis of the big dump in Circle's stock price behind the integration of XRP Ledger with USDC EVM sidechains
6/20/2025, 11:28:14 PM
This article interprets the news of the XRP Ledger planning to launch the USDC EVM sidechains and delves into the reasons behind Circle's stock price falling nearly 10% along with newbie investment strategies to help you grasp key points.
Background review
Technical value and potential impact
Interpretation of Circle's Stock Price Volatility
Risks and opportunities coexist.
Newbie investment advice
Background Review
FXStreet reported on June 12, 2025, that the XRP Ledger will launch a USDC sidechain compatible with the Ethereum Virtual Machine in the second quarter, facilitating cross-chain applications of stablecoins. This move is seen as a complement to the Ethereum mainnet, but it has also caused significant fluctuations in the stock price of USDC issuer Circle.
Technical value and potential impact
- Cross-chain interoperability: EVM sidechains can achieve direct interaction with Ethereum dApps, lowering the threshold for developers.
- Cost advantage: The XRP Ledger charges a transaction fee of less than 0.00001 XRP, which is a clear advantage.
- Ecological diversification: Sidechains will attract the landing of multiple application scenarios such as DeFi, NFT, and gaming.
Interpretation of Circle's Stock Price Fluctuation
- Competition concerns: The distribution of USDC across multiple chains may erode Ethereum's market share and undermine investor confidence.
- Profit model risk: lower on-chain fees or compressed revenue sources for Circle.
- Emotion-driven sell-off: institutions and retail investors take the opportunity to reduce their positions, creating selling pressure.
Currently, the latest closing price of Circle is about 18.50 USD, with a fall of nearly 9.5%; the market price of XRP is around 0.60 USD, fluctuating 1.8% within 24 hours.
Risks and opportunities coexist
- Risks: Market diversion; technology implementation not meeting expectations; changes in the macro regulatory environment.
- Opportunities: Innovation in cross-chain applications; Increased ecological cooperation; Overall expansion of the stablecoin market.
Newbie investment advice
- Buy in batches at dips: For those optimistic about the future of multi-chain, gradually buy near important support levels.
- Set goals: clearly define short-term and long-term return expectations, and strictly implement profit-taking strategies.
- Keep learning: Pay attention to official announcements and community dynamics to grasp the latest developments of the project.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
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