ARK Invest Director of Crypto Research Lorenzo Valente said the crypto industry is going through what he described as the largest consolidation phase in its history, one he sees as deeper than previous bear-market shakeouts. In his view, market structure has changed, capital is becoming more selective, and teams and exchanges without product-market fit are shutting down. He also said revenue concentration has reached record highs across multiple layers of the industry, including applications, middleware, and Layer 1 networks. According to Valente, Hyperliquid and Pump.fun together account for 67% of total application revenue. Adding Ethena brings the combined share of the top three platforms to nearly 80%. Valente expects consolidation to intensify over the coming months, with more mergers and acquisitions, bankruptcy filings, shutdowns, and acqui-hires. He said he views that trend as a bullish signal for the crypto industry.
ARK Invest Director of Crypto Research Lorenzo Valente said the crypto industry is going through what he called the largest consolidation phase in its history, adding that it is more severe than in previous bear markets.
Valente said market structure has changed, capital has become more selective, and teams and exchanges without product-market fit are shutting down. He added that revenue concentration has reached record highs across applications, middleware, and Layer 1 networks.
Application revenue is clustering around a handful of platforms
According to Valente, Hyperliquid and Pump.fun together account for 67% of total application revenue. Including Ethena lifts the combined share of the top three platforms to nearly 80%.
Valente expects more consolidation in the coming months
He said consolidation is likely to intensify over the next few months, with more mergers and acquisitions, bankruptcy filings, shutdowns, and acqui-hires. Valente also said he sees that trend as a bullish signal for the industry.
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