Circle Seizes Control with $210M Coinbase Shares: Is USDC Set to Overtake Tether?

With a strategic stock purchase of $210 million, the Circle acquisition of Coinbase shares is at the centre of USD Coin (USDC). This action, revealed in a fresh IPO filing, helps Circle solidify its grip over the second-largest stablecoin as the battle heats up. Circle seems to be positioning USDC for greater institutional acceptance before its public listing, given that Tether controls 68% of the market. However, let us examine the consequences of this milestone transaction for the direction and expansion of USDC, given that it’s the founding partner.

USDC’s New Era: Complete Control vs. Regulatory Storm Ahead

With the all-stock transaction, Circle acquisition has complete control of Centre, therefore abolishing the dual governance framework set up in 2018, together with Coinbase. Although Coinbase shares will still distribute USDC, it will not be in charge of operations anymore. This merger comes as Circle gets ready for its expected IPO and aims to reinforce USDC’s stance against Tether’s dominance. According to industry analysts, the arrangement shows Circle’s need for unilateral decision-making as regulatory scrutiny of stablecoins intensifies. 

With the MiCA rules of the EU and trailing U.S. time, legislation on stablecoin still in process, simplified governance might be helpful.  On the other hand, losing Coinbase’s direct participation would affect retail distribution channels. The purchase also suggests Circle’s aspirations beyond those of a mere stablecoin issuer. Recent moves into cross-border payments and treasury services indicate Circle may be creating a thorough financial infrastructure platform, with USDC securely instead of exclusively. Let’s take a look at the Ethereum price prediction to see how this development impacts the price of ETH.

Ethereum Price Prediction for April 2, 2025

On the 15-minute chart, Ethereum (ETH/USDT) fluctuates between main support and resistance regions. The price has fallen lately, rejected close to the $1,920 resistance, and is now about $1,878.39. Previously used as reversal points, support levels are found at $1,840 and $1,780. Following an overbought situation that resulted in a price drop, the RSI is 39.19, showing bearish momentum. With a downward crossover, the MACD (Moving Average Convergence Divergence) is also bearish and implies more downside volatility.

Chart 1: Analysed by vallijat007, published on TradingView, April 2, 2025

If ETH stays over $1,840, there might be a possible reversal back toward resistance. Breaking under $1,840 could, however, result in more drops toward $1,780 if selling pressure rises. For bullish validation, a breakout above $1,920 is necessary. Before getting into any position, traders should keep an eye on RSI and MACD patterns to appraise momentum changes and possible reversals.

USDC’s Make-or-Break Moment: Can Circle Acquisition of $210M Gamble Outpace Tether?

The Circle acquisition of $210 million marks a crucial turning point in USDC’s path as it heads for its public debut, swapping shared management for simplified control. Success depends on keeping Coinbase’s distribution network intact while seeking institutional acceptance, although this enables faster decision-making. Circle’s bet places USDC as the basis of a larger financial system rather than simply a payment currency, as regulatory structures harden and stablecoin rivalry grows. The next few months will show if consolidation sparks creativity or leaves USDC at risk in the fight for stablecoin dominance.