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Crypto DeFi

ARK Invest: Stablecoin Race Down to Tether and Circle Above $10B

ARK Invest crypto analyst Lorenzo Valente said stablecoins show strong network effects, with the field thinning sharply as market-cap thresholds rise. Only 12 stablecoins now top $1 billion, up from single digits in 2021, while the number above $10 billion has fallen from its 2022 peak, leaving only Tether and Circle’s stablecoins. Valente said the cohort to watch is those moving toward $100 billion, then $1 trillion and $5 trillion.

Original source

AI take

The interesting signal here is not consolidation itself but the shape of it: ARK's framing suggests stablecoin scale is a winner-take-most dynamic, where the pool of credible issuers narrows as the bar rises, even as the total number of mid-sized tokens grows. That bifurcation matters for anyone building on stablecoin rails, since liquidity and integration depth concentrate around the few names that clear each threshold. The open question is whether the tokens now climbing toward the next tier can hold network effects long enough to matter, or whether the same gravity pulls them into the top cohort.

Generated by AI for reference only.

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