That's a good point. Thiel's "Zero to One" makes it.
In economics, a market needs several reasonably strong businesses to get price competition. An EU study indicated that the minimum number is about 4. Below 4, price competition seems to disappear and you have oligopoly, or, at 1, monopoly.
In areas where there's no inherent effect like distance to stop centralization,
markets tend towards oligopoly. Look at the number of browsers, the number of big banks, the number of cellular phone companies, and so forth. They're all between 2 and 4.
The stable state seems to be around 3 big players.
This probably applies to social networks. There's only so much attention available.