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Crypto Market Sees Record Revenue Concentration Amid Consolidation

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ARK Invest researcher Lorenzo Valente believes that the crypto market is experiencing its largest-ever consolidation phase, marked by closures, mergers, acquisitions, and Chapter 11 filings as capital becomes increasingly cautious.

The trend signals increased centralization and fundraising risk for crypto, DeFi, CEXs, and token markets, which could pressure adoption and token performance.

According to Valente, the market has seen a record-high revenue concentration across applications, middleware, and Layer 1 networks, with Hyperliquid, Pump.fun, and Ethena now generating nearly 80% of application revenue.

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