Stablecoin competition is increasingly showing winner-take-all dynamics as network effects strengthen across the sector, ARK Invest crypto analyst Lorenzo Valente said. Despite thousands of stablecoins in circulation, the number of projects thins quickly as market capitalization thresholds rise. The number of stablecoins with market caps above $1 billion has increased only from single digits in 2021 to 12 today. The group above $10 billion has declined from its 2022 peak and now includes only Tether and Circle stablecoins. Valente said entering the $10 billion club is already difficult, while the $100 billion tier may remain a two-player contest for a long period and the $500 billion tier may have only one stablecoin over the next two years or more.