ARK Invest: Stablecoin Competition Has Entered a "Winner-Takes-All" Phase, With Only Two Companies Likely to Dominate the $100 Billion Market Long-Term

TechFlow reported on September 10 that ARK Invest crypto analyst Lorenzo Valente stated in a post that stablecoins exhibit clear network effects. Although thousands of stablecoins exist in the market, the number in each tier rapidly plateaus as the market capitalization threshold increases. Currently, the only truly noteworthy stablecoins are those surpassing a $10 billion market cap, which are gradually advancing toward the $100 billion and $500 billion tiers.

Data shows that since 2021, the number of stablecoins exceeding a $1 billion market cap has only grown from single digits to the current 12. Meanwhile, the count of stablecoins surpassing $10 billion in market cap has actually declined from its 2022 peak, leaving only Tether and Circle’s stablecoins. Lorenzo Valente believes that entering the $10 billion market cap club is already highly difficult, and the $100 billion tier will likely be contested by only two players for a considerable period. Furthermore, it may take over two years before a single issuer reaches the $500 billion level.