ARK Invest: Stablecoin Market Shows High Concentration Trend, Only Tether and Circle Remain at the $10 Billion Level

BlockBeats news, September 11: Lorenzo Valente, Research Director at ARK Invest, stated in a post that stablecoins exhibit clear network effects. Although thousands of stablecoins exist in the market, as the market cap threshold rises, the number of projects able to reach the corresponding scale rapidly decreases.

Valente pointed out that the number of stablecoins with a market cap exceeding $1 billion has only increased from single digits since 2021 to the current 12, a very limited growth; stablecoins with a market cap exceeding $10 billion once numbered 4 at their peak in 2022, but now only Tether and Circle's stablecoins remain. Valente believes that reaching the $10 billion level has already become very difficult, and the stablecoin market above $100 billion may be dominated by Tether and Circle for the long term, while stablecoins with a market cap exceeding $500 billion may see only one able to reach that scale for more than the next two years.