Crypto Industry Entering Biggest Consolidation Phase Yet: ARK Analyst

ARK Invest analyst Lorenzo Valente says the cryptocurrency industry is entering its biggest consolidation phase yet.

This comes as revenue becomes increasingly concentrated among a handful of dominant protocols, with investors growing more selective and harder to please.

According to Valente, perpetual futures exchange Hyperliquid and memecoin launchpad Pump.fun account for roughly 67% of total crypto application revenue, while synthetic dollar protocol Ethena raises the top three's combined share to nearly 80%.

This trend is expected to accelerate in the coming months, leading to more mergers and acquisitions, Chapter 11 bankruptcies, project shutdowns, and acqui-hires, as weaker projects struggle or shut down.