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Stablecoin Giants: Only Two Rule the $10B+ Market
12 Sep
Summary
- Only two stablecoins, USDT and USDC, exceed $10 billion market value.
- Over 135 stablecoins have market value exceeding $1 million.
- ARK Invest purchased $3.36 million in Circle shares recently.
The stablecoin market, despite hosting thousands of tokens, is experiencing extreme consolidation, with only two achieving a market value exceeding $10 billion. These dominant stablecoins are Tether's USDT and Circle's USDC.
ARK Invest's research director, Lorenzo Valente, observed that while around 135 stablecoins have a market value of over $1 million, this number rapidly diminishes at higher valuation tiers. The $10 billion mark, once held by four entities in 2022, is now exclusively occupied by USDT and USDC.
Valente predicts that the $100 billion and $500 billion tiers will likely remain a two-player and single-player race, respectively, for the foreseeable future. This concentration of demand around established tokens is supported by broader adoption research, indicating that most stablecoin holders plan to increase their holdings in existing, well-capitalized options.
Underscoring this outlook, ARK Invest recently purchased 35,192 shares of Circle Internet Group, valued at approximately $3.36 million.
