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Crypto enters biggest consolidation phase as revenue concentrates
Cointelegraph cites ARK Invest’s Lorenzo Valente, saying the top crypto applications hold about 67% of application revenue, with the share rising to nearly 80% when Ethena is included.
Crypto is moving into what ARK Invest analyst Lorenzo Valente calls its biggest consolidation phase yet, driven by investors becoming more selective and leaving weaker projects struggling to attract capital, according to Cointelegraph.
Valente said revenue is increasingly concentrated among a small number of dominant protocols as weaker projects shut down, with Hyperliquid and Pump.fun together accounting for roughly 67% of total crypto application revenue. He added that including synthetic dollar protocol Ethena brings the combined top three share to nearly 80%.
He expects the concentration to accelerate over the coming months, potentially leading to more mergers and acquisitions, Chapter 11 bankruptcies, project shutdowns, and acqui-hires. Despite the shakeout, Valente characterized the consolidation as “extremely bullish” for the sector.
Cointelegraph also noted that several crypto exchanges have announced plans to wind down operations in recent days. BitMEX said it would shut down its exchange in September after a strategic review by owner HDR Global Trading, while BitMart plans to end trading services on Aug. 26 and fully wind down operations in January 2027.