Crypto Market Consolidates: Revenue Flows to Fewer Businesses
ARK Invest's director of digital assets research, Lorenzo Valente, believes that cryptocurrency is entering its deepest consolidation phase yet. He points out that revenue and investment are flowing towards fewer businesses.
In his analysis, Hyperliquid and Pump.fun generate 67% of application revenue, with Ethena adding to the top-three share at almost 80%. This trend is part of a larger shift in the market structure, where capital is more selective and projects without real product-market fit are shutting down.
Recent evidence supports Valente's warning. Storj Labs has filed for Chapter 11 bankruptcy, while BitMEX announced its shutdown on September 23. BitMart also issued an official wind-down notice, with plans to cease platform operations by January 31, 2027.
The consolidation cycle is expected to accelerate further, with more mergers and acquisitions, Chapter 11 filings, and shutdowns predicted in the coming months.