Crypto Market Enters Largest Consolidation Phase in History
ARK Invest analyst Lorenzo Valente has highlighted that the crypto market is currently undergoing its largest phase of consolidation in history, surpassing previous bear markets. According to Valente, capital has become much more selective, and teams and exchanges without a real product-market fit (PMF) are shutting down.
The market structure has changed significantly, with revenue concentrating among a few top protocols. As an example, Hyperliquid and Pump.fun account for about 67% of the total revenue of crypto applications, while including Ethena, their combined share approaches 80%. Valente expects consolidation to accelerate in the coming months, leading to new acquisitions, mergers, project closures, and Chapter 11 bankruptcies.
Valente's forecast is seen as extremely optimistic for the industry. The analyst also noted that widespread layoffs and company closures may be indicative of market consolidation. In July alone, exchanges BitMEX and BitMart announced they were ceasing operations.