ARK Invest: The stablecoin market is highly centralized, with the potential for a "duopoly" worth hundreds of billions of dollars

ARK Invest crypto analyst Lorenzo Valente stated that stablecoins have a significant network effect. Although there are thousands of stablecoins in the market, as the market capitalization threshold increases, the number of tiers is rapidly leveling off. Currently, the stablecoins that are truly worth paying attention to are those with a market capitalization exceeding 10 billion dollars, gradually moving towards the 100 billion and 500 billion dollar levels.

Data shows that the number of stablecoins with a market capitalization exceeding 1 billion dollars has only increased from single digits to the current 12 since 2021, while the number of stablecoins with a market capitalization exceeding 10 billion dollars has actually decreased from its peak in 2022, with only Tether and Circle's stablecoins remaining. Valente believes that entering the 10 billion dollar market capitalization club has become very difficult, and in the future, the 100 billion dollar level stablecoins may only have two competitors for a long time, while it may take more than two years for only one to reach the 500 billion dollar level.