Crypto Market Consolidation: Three Protocols Dominate 80% of App Revenue
The crypto market is undergoing its largest consolidation phase in history, according to ARK Invest research. The analysis reveals that nearly 80% of crypto app revenue is being captured by just three protocols: Hyperliquid and Pump.fun account for 67%, while adding Ethena brings their combined share to almost 80%. This concentration of capital and users among a few dominant platforms is a significant trend in the industry, as investors become increasingly selective and projects without strong product-market fit struggle to survive.
ARK Invest's director of digital assets research, Lorenzo Valente, stated that 'capital is much more selective' and teams and exchanges without real PMF are shutting down. The trend extends beyond applications into infrastructure, with high revenue concentration across middleware and Layer 1 blockchains also observed.
The consolidation phase is expected to accelerate in the months ahead, with more mergers and acquisitions, additional bankruptcies, project closures, and competition for experienced talent likely to reshape the sector. ARK Invest views this restructuring as a positive development for the long-term health of the crypto ecosystem, describing it as 'extremely bullish for the space.'