Crypto entering biggest consolidation phase in history, says ARK analyst
ARK Invest’s Lorenzo Valente says crypto is entering its biggest consolidation phase, with revenue increasingly concentrated in a few dominant protocols. He argues investors are becoming more selective, making it harder for projects and exchanges without strong product-market fit to raise capital, while weaker ones shut down or fail. As evidence, he says Hyperliquid and Pump.fun generate about 67% of total crypto application revenue, and adding Ethena lifts the top three to nearly 80%, a record level of concentration. He expects the trend to intensify, bringing more mergers and acquisitions, Chapter 11 bankruptcies, project shutdowns, and acqui-hires. Despite the shakeout, he views it as bullish for the industry. Recent exchange closures and wind-down plans, along with deals like Bybit’s acquisition-backed expansion in Indonesia, reinforce the consolidation trend.
