Crypto Revenue Concentration Hits Record Levels
The cryptocurrency market is undergoing its most concentrated consolidation phase yet, according to ARK Invest. Research associate Lorenzo Valente notes that Hyperliquid and Pump.fun together account for roughly 67% of all crypto application revenue, with Ethena's inclusion pushing the top three platforms' combined share to nearly 80%. This level of concentration has never been seen before in the industry.
Valente expects more mergers, acquisitions, and Chapter 11 bankruptcies alongside project shutdowns and acqui-hires in the coming months. The trend is driven by investor selectivity, which is funneling attention and money toward platforms with products that people demonstrably want to use.
The consolidation phase has already led to the closure of BitMEX and BitMart, while Bybit expanded into Indonesia through its acquisition of NOBI. Valente views this trend as 'extremely bullish' for the industry, as shakeouts eliminate weak projects and redirect capital toward proven ones.