Stablecoin Market Dominance: Tether and Circle's Unrivaled Scale

ARK Invest's research director Lorenzo Valente says only two stablecoins have reached scale in the market. According to him, thousands of stablecoins exist but only USDT from Tether and USDC from Circle have crossed the $10 billion threshold.

The data shows that while there are 135 stablecoins with more than $1 million in market value, this number drops sharply at each higher threshold. For example, above $100 million, it falls to roughly 40, and above $1 billion, just 12 stablecoins remain.

Valente believes breaking into the $10 billion tier is extremely difficult and that the $100 billion tier will likely be a two-player race for the foreseeable future. He also predicts that the $500 billion tier will probably belong to a single issuer for at least the next two years.